Peyto Exploration & Development Corp T.PEY

Lng price when kitimat opens

[robert41]

Does any one know what the expectations are and how the price will be determined? I see no discussion on this.

[Quintessential1]

I assume LNG Canada will be getting JKM pricing with that being possibly their most lucrative FOB market with no US LNG on the west coast and one plant shipping out of Mexico's west coast. But I have not seen any indication that PEY has any kind of supply contract with an LNG shipper. They of course will be the recipient of higher prices should LNG raise the NG pricing across the board. I

[robert41]

Odd that there is no chatter about this on any of the SH boards. I looked at the jkm pricing not sure how to convert that to a Henry hub or aeco price. Currently jkm at $16.00 whatever that means

[houbahop]

A $16 JKM means there's no money to sell to that destination after considering the cost to move the gas to a LNG sea port, the cost to liquify, and the cost to ship abroad.

[robert41]

Thx houbahop i guess there goes the excitement for exporting lng 

[malx1]

LOL These guys have no idea what they're talking about. LNG contracts are 10, 15, 20, 25yrs. Reflect oil pricing, not JKM near-month. Respectable profit margins will be baked in for supplier.    Customers won't be paying spot pricing. What it all means is that Western Canadian NG prices will firm up as market excess is mopped up by incremental demand.  

[houbahop]

Hey malx1, You sound like you have narcissistic personality disorder. Didn't your mama taught you how to express yourself?

[malx1]

Call it as I see it.     Plenty of big talkers here.    

[stockmarket1]

Na...his mama threw off him off the train lol. 

[malx1]

80yr olds who communicate like they're 12.      Cute 

[Quintessential1]

Yup, none of them are linked to JKM pricing. ARC will get a netback, linked to S&P Global Commodity Insights' Platts JKM, the benchmark price for spot LNG delivered to Northeast Asia. Fixed LNG shipping costs and a fixed liquefaction fee for Cheniere will be deducted. https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/lng/050422-canadas-arc-resources-reaches-supply

[robert41]

Thx for the input, so if it is linked to jkm pricing at $16 there's no money it for ARX and maybe others if that's their deal as well? this is what houbahup is suggesting I'm not saying anyone is right or wrong. Seems pointless to have built this project if jkm is that close to crappie aeco and HH pricing. Good discussion appreciate the comments 

[TerribleEng]

As others have mentioned.  Almost all the N. American LNG exports are priced to the consumer at HH+Liquidfaction costs or to an exporter at JKM or TTF.  It really doesn't matter what the LNG vessel gets if you are a just selling the molecules and don't own the gas on the shop. You don't get JKM. There is lots of margin in there. LNG is profitable as long as HH doesn't