The Disconnect Between U.S. Gas Prices & Recent LNG Deals

The transcript covers discussions from a major LNG conference, highlighting market tightening due to growing demand and limited new supply. Peter Coleman of Woodside Petroleum predicts a tighter market in 2020. The US LNG industry faces challenges with low global prices and higher domestic costs, impacting exports. Tolarian's new model with Total involves equity stakes instead of tolling fees, aiming to commoditize LNG like oil. Investment is crucial for project development, with cornerstone customers being key. The Permian region's negative gas prices and the resurgence of Brent oil deals are also discussed.

What is the main reason for the expected tightening of the LNG market in 2020 according to Peter Coleman?

• Decrease in demand

• Increase in new supply

• Lack of new supply and growing demand

• Stable market conditions

What is the new model proposed by Tolarian in their deal with Total?

• Reducing marketing costs

• Equity stake and selling LNG at cost

• Increasing tolling fees

• Focusing on domestic sales

What is a potential consequence of low global LNG prices on US exports?

• No impact on US exports

• Stability in US exports

• Slowdown in US exports

• Increase in US exports

What is the significance of having a cornerstone or anchor customer for a project?

• It guarantees immediate profits

• It ensures the project is built without further investment

• It attracts more investors and supports project development

• It reduces the need for marketing

What is the current trend in the Permian gas prices mentioned in the transcript?

• Prices are increasing

• Prices are unaffected by global trends

• Prices are stable

• Prices are negative