OTCPK:PDPYF - Post by User
Comment by
righand2on Mar 13, 2017 11:06am
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Post# 25970955
RE:Re :Question
RE:Re :Questionramman1 wrote: As you know, ''in addition'' to the PPY contract of production to the Townsend facilities of ALA, they also have significant production to the NGTL with 130m cu/ft/d going into Towerbirch expansion/gathering lines .,when the line(s) gets completed. This increases to 174 m cu/ft d in Nov /17.The product then goes into the NGTL at Groundbirch. Ability to get this forward production to the NGTL was of ''paramount importance'', PPY would be in a pile of trouble ,IF that production were to be ''backed up. That is now, not an issue. As well, the .77c per gigajoule ,fixed transport cost, will save PPY, in my calculations, around 15 % to 18% in corporate transport fees. All this activity ,is not an overnight happening, but is significant going forward.
It isn't just that the new TRP deal will "save" PPY transport fees, but that the price premium at Dawn will often not only pay the entire 77 cent transport fee, but even earn PPY a profit. This is a great deal, and the fact that PPY got in on it once again highlights just how smart PPY's management really is.