Veresen Inc. T.VSN.DB.B

Brent Crude Oil Linked LNG Contracts

[viTRifY]

Veresen is competing with LNG projects in Australia where the LNG price is linked with Brent Crude Oil.  If oil prices stay depressed, Japan et al will delay signing any long term commitments, which pushes the FID out beyond 2015. 

There is also a good article at RBN that can be found here:

https://rbnenergy.com/spouse-of-the-rising-sun-no-lng-divorce-imminent-despite-it-all

[glacierman]

Good article.thanks for the link.    This clearly shows that Don Althoff was counting his chickens a bit early.   That's a rookie mistake. Don Althoff, Veresen's president and CEO, spoke with confidence during a (March 2014) conference call following the U.S. Department of Energy’s Monday announcement (of export approval). “I don’t think this is going to be a

[rdwww]

"four-year construction period." what fool thinks that oil is going to be 50-70 a barrel in 4 years? These prices stick around for 3 years and we are going to have some major upheavals/ civil wars in a # of countries around the world. This is a short term mess in the long run scheme of things, but the mkt likes to react quickly to this stuff bahhhh

[doomz78]

this seems to be the great discount in pipelines.  Or am I missing something?  Yield is good.  Company seems pretty well run.  

[righand2]

All US and Canadian LNG will be sold based on Henry Hub natural gas prices. So unless the price of oil stays low for years, we will be very competitive on the global market.

[PAGODA5]

The LNG plant in Oregon is a positive acquisition. The question is, can they afford to do it, and the answer is No. They are going to have to bring on some other partner. These midstream type companies are dependent on other producers’ cash flows, and you are going to see them react to the low price in oil. He feels there is more uncertainty on this company because of the project size, which is

[bttmfischer]

Was that purchase price paid  in US or Canadian $? That could make a difference. By the same token the rapid slide of the loonie could help the canadian oil exporters if  the current exchange rates prevail IMO.

[bttmfischer]

Actually PAGODAS, VSN Inc has one too many partners as it happens. One of them EFG Inc. took VSN to court on January 23 and the court agreed with them. They might even sue VSN for costs. Reading the decision, looks like VSN made a mistake by not changing the agreement they made with EFG when they changed their mind about what the purpose of the project is to be. Apart from that, I think that there

[LarryHole]

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