Apr. 27 at 5:36 AM
$VG deal or no deal - the LNG market is now a free for all - Qatar had a stranglehold and their supply expansion could have suppressed pricing for years. Literally the opposite is true and Qatar capacity is now hobbled for years
Also even if Qatar or the GCC miraculously resumed massive production overnight - impossible - the risk premium of doing business in the ME exists and is massive. Tensions will remain elevated (Mines still exist in the strait, ship traffic will continue to be throttled, Israel is still hell bent on subduing proxies, Iran still has nuclear enrichment and likely wants to keep tolling Hormuz - either formally or with shakedowns). Few of these issues are resolved immediately
So LNG supply is hobbled & the risk premium will persist
Thus a US based company with expanding supply over the next year will be viewed very favorably
I don’t like profiteering on this crisis but you cannot stop this wave. You either ride it out or watch it/gripe as you pay at the pump
