RE:RE:RE:KOGAS replacing expiring LNG contract in sizeI’m not looking for a turn in the market.
There is lots of LNG available now, in transport, in storage, in production, with many other projects besides LNGCANADA under construction or being planned. Prices are currently depressed as a result.
These contracts are for LNG, which PONY doesn’t produce. LNGCANADA can source from whoever they want, including PONY, but so can KOGAS, and they have lots of other places to look. There is no magic to the contracts expiring, it’s business as usual. PONY may benefit, it may not. For the Korean market, we’ll be in the best position for North American supply but we still have to compete - and win.
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roscoe74 wrote: I think you miss the point, Sadie. There is no magic moment that will suddenly turn the market. If you take a comprehensive look at all the advances in natural gas technology, the long term trend to increased demand becomes apparent. This is new demand from replacing coal, bunker and diesel.<br /> <br /> Whether or not Canada gains from this trend to any great degree is open to debate but the rest of the world is certainly accepting the fact that while NG is still a hydrocarbon, it is a necessary stepping stone to a carbonless future.<br /> <br /> In my discussions with the company, there are no indications that they have deviated from the long term strategy of becoming a senior producer. They are in discussions with both Kogas and PC for long term supply agreements. While Pony has no inclination to sell, it will be no surprise to me should Petronas take them out in the next few years.
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