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Re: Grouse Hunter post# 11698

Monday, 01/29/2018 5:00:28 PM

Monday, January 29, 2018 5:00:28 PM

Post# of 59874
Fred Jones has said that securing financing is challenging:

A rapidly growing spot market worldwide for LNG, allied with global oversupply of the super-chilled fuel for at least the next few years, is transforming an energy business that traditionally counts on 20-30 year purchase agreements to bankroll projects.

"It's a very significant challenge to secure long-term buyers given the rise of spot market and oversupply," said Jones. A founder-shareholder of legendary trading business Marc Rich & Co, Jones was in Beijing as part of a trade delegation accompanying U.S. President Donald Trump on his visit to China.

https://www.cnbc.com/2017/11/09/reuters-america-delfin-signs-china-gas-deal-taps-chinese-banks-to-fund-1st-us-floating-lng-plant-ceo.html


I suspect that even if they get some financing, it will likely not be enough to completely fund Delfin's projects in their entirety. "Hedging their bets" might mean raising capital through a public vehicle that financing doesn't cover. That makes the most sense to me since public companies often obtain traditional financing as well.




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