Touchstone Exploration Inc T.TXP

LNG Recovery

[moric122]

Interesting article today from energyintel on LNG price recovery. I think this excerpt says it all:

• Energy Intelligence assessments of spot prices for Northeast Asia deliveries up to two months ahead surged $3.35, or 39%, week on week to $12 per million Btu, its highest levels since November 2014 and the largest weekly gain since assessments commenced in 2010.

shorturl.at/hstC1

[Goaweigh]

This is why I'm so interested in seeing how they structure a deal like this. The gas Co.'s costs are reasonably well known , they know how many dollars per cuft of gas they need to collect to pay for that pipe plus G&A and a reasonable return to shareholders. No mystery there. So will it be a fixed rate like .50 per mcuft regardless of market forses or will it be a floating rate like