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March 2015
02 Mar
LNG News and Analysis February 2015
 Here's my analysis of the LNG and natural gas industry news from the month of February, 2015.  

More Pipeline Sales Coming

 Remember how QGC sold off their transmission pipeline for a billion more than anyone expected? Well, no surprise, but the other projects are now contemplating spinning off their pipelines too. I've written about the potential for balance sheet restructuring before, and continued low prices should have a sufficiently nasty impact on industry economics that more and different assets should come to market. There are going to be a need for some creative footwork given the complex ownership structures and tax rules, and the different risk and value trade offs that the owners make about their stake in the assets. However, never underestimate the creativity of the tax and investment banking sectors to figure out creative ways to move assets around to create value. I expect more asset sales activity.
March 2015
08 Dec
News and Analysis – November 2014
Here's my analysis of the LNG and natural gas industry news and analysis from the month of November, 2014. 

Oil Drags LNG To The Basement

Far and away the biggest story of the month was the buildup to the OPEC meeting on November 27 and the fall out afterwards. All month the Saudis were passing the word that they were going to push prices down so it was no surprise, really, if you were paying attention. It's the biggest price drop in 6 years, and with it, any gas (pipeline or LNG) that is priced with reference to oil also went down. Oil and gas stocks took a beating (70% of the value of a stock in this sector can be statistically explained by just two variables – the daily price of oil and the number of barrels of oil and gas in reserves). With cash flow crimped, the global industry will pull back and cancel or trim capital spending, defer selling anything until better times, with parallel impacts on services companies (demand contraction, idle equipment, pricing pressures). M&A activity will pick up as everyone in the sector is now revalued lower, and the best way executives can now reach their performance goals is to acquire something. The LNG sector is not immune to this phenomenon and there's lots of stories that Australia's LNG projects might get taken out. Expect to see transactions in the services sector (like this big one between Baker Hughes and Halliburton). For a few more predictions, have a look at this blog on the topic.
When the going gets tough, the best balance sheets go shopping! #LNG
March 2015
06 Oct
LNG News And Analysis – September 2014
Here's my analysis of the most interesting news from the world of LNG and natural gas from the period September 1-30, 2014. 

Feeling the Chill

As winter approaches, the pressure is ratcheting up on those European nations dependent on Russian gas supplies to get sorted. Gas shortages and high spot prices are on the menu as Greece gets around 70% of its gas needs from Russia, Bulgaria 100%, with Serbia, Hungary, Austria, Slovenia, Slovakia, Turkey and the Czech Republic also highly dependent. Perhaps it would be helpful to have Ukrainians pay market price for the gas that they consume. I was shocked to learn that a third of Ukrainian households pay US$2.40/month for unlimited gas consumption. With prices this low, for sure some Ukrainian households are overconsuming gas. Neighbouring countries (Hungary, Poland) have offered to ship gas to Ukraine, and are told by the EU that reshipping gas is legal under EU law, but contract restrictions, not to mention Russian annoyance (read retaliation), makes short work of any attempts to help out. So onto contingency planning via storage, FLNG supplies and industrial preparation. You can find an earlier blog about this story in my archives.
March 2015
30 Jun
LNG News and Analysis June 1 – June 28, 2014

Here's my analysis of the most interesting news from the world of LNG and natural gas from the period June 1 to June 28, 2014.Russian Pipe Digs OnRussia is building a massive gas pipeline that bypasses its troubled neighbour, Ukraine, en route to European gas...

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21 Apr
LNG News and Analysis – Apr 7 – Apr 18

Here's my analysis of the LNG and natural gas related news from April 7 to April 18, 2014.APPEA 2014 - reading the entrails[caption id="attachment_361" align="alignleft" width="199"] APLNG Trade Show Booth at APPEA 2014[/caption]The start of the week was occupied by Australia's annual show and tell...

LNG News and Analysis – Feb 2 to Feb 15

Here's my summary and perspectives on the more interesting news on LNG and natural gas over the past 2 weeks (February 2 to February 15, 2014). FLNG on a rising tide There were two important stories on the growing interest in floating LNG liquefaction terminals...

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10 Nov
Nov 4 – LNG News of the Week

Nov 4 - Most Interesting LNG News of the WeekHere's my summary of the most interesting LNG news stories from the week starting November 4, 2013.Russian gas - Ukraine signs another shale gas deal, this time with Chevron. This move coincident with Ukraine considering...

Oct 21 – LNG News Themes of the Week

Here's my weekly round up of the LNG news for the week of October 21, 2013.Fracking - Upstate New Yorkers getting heated that the state still bans fracking when just across the border, the neighbours are building gas businesses. Global day of opposition to fracking...

Oct 14 – LNG News Themes of the Week

Here's my weekly round of up LNG news themes from the week of October 14, 2013.Russia Again - Russia disses the US shale revolution, announces Jan 1 2014 as the date of gas export liberalisation, promises to defend its gas...

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