The logistics of all of this is fascinating to me, and the complexity is compounded by the fact that most of these projects are owned by different companies, but are completely interconnected. Exciting times.
It seems almost crazy that more capacity is needed. There is a maze of existing natural gas pipelines in that part of the world. I'll try to post a map when I run across a good one. The requirement to up the plumbing really emphasizes how much volume is required to supply future LNG export.
Yes, it is exciting times with the prospect of LNG exports dramatically increasing starting in 2024/2025. Barring a sudden end to the Ukraine conflict and Russia NG resuming substantial exports to the West (highly unlikely), this should bode well for us royalty owners. It may be a painful 2023 based on the current collapse of NG prices but I'm hoping 2024 provides some price increases reflecting this increased export capacity. Looking at forward futures prices through 2025, traders don't seem to be pricing in this optimism. Future prices, as we all know can be volatile and reprice quickly, but I would have thought the futures curve would be steeper than it is now. Let's hope Wall Street NG traders have it wrong!
I agree. And I don't pay any attention to the future prices, only to the monthly settlement price.
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