Replies to post #12710 on Capstone Green Energy Corp (fka CGRNQ)

[Seasound]

Funny that you posted that as I was going to post some links about the same thing. FSRUs are already happening in Japan as well as other markets. The older 1st generation LNG ships, 125,000 cubic meters capacity, are currently in high demand. Charter rates for the mid-70's era are commanding 70k a day right now. I'll post some additional links if you would like. I'm pretty well keyed in to that industry.

[Seasound]

Just a bit more on Japan and FSRUs. Japan just completed its first ship to ship (shuttle to FSRU) several months ago. This type of LNG Carrier operation isn't just a concept it is a reality. As the article you posted points out the problem right now is securing tonnage to carry out the task. Check out Excelerate Energy Excelerate Energy for a good overview of the industry.

Interestingly, Indonesia has just started a FSRU project using a US built LNG Carrier, the LNG Aquarius. The reason I say "interesting" is because the LNG Aquarius delivered the first cargo out of Bontang, East Kalimantan on the island of Borneo Indonesia in August of 2007. That cargo was delivered to Osaka Gas, in Osaka, Japan. The Aquarius also delivered the first ever LNG cargos to Japan's 4 other LNG receiving facilities. The Aquarius again loaded the first ever export cargo out of PT Arun, on the island of Sumatra Indonesia in October of 1978 (the PT Arun export facility is now being converted to an import facility, which is of interest because here in the US our import facilities want to convert to export facilities.) The LNG Aquarius was joined by 7 sister ships all built in Quincy, Mass., and evolved into the largest LNG trade, by tonnage, at the time, i.e. from Indonesia to Japan. The Quincy ships, now known as "the old ladies" are still in operation today, commanding premium day rates, but unfortunately not under the American flag which was lowered 12 years ago.

In the late 60's and early 70's MITI (Japan's Ministry of International Trade and Industry) made a decision that the main electrical power source for Japan would be Nuclear generated, leaving but a few scraps to appease the natural gas industry. It remains to be seen whether or not the Nuclear Plants will be restarted, as Japan struggles through it's energy crisis, but according to Bloomberg Japan Wins Scientists’ Panel Nod to Restart Atomic Reactors.

Having depleted the natural gas fields in Sumatra (exporting LNG to Japan,) Sumatra now finds itself shuttling LNG from Bontang to an FSRU moored in Jakarta Bay. Again, the LNG Aquarius inaugurated that trade. Funny how the world turns.

Reading the linked articles you will get but a glimpse of the burgeoning demand for natural gas, which of course bodes very well for Capstone if they can execute.

[Seasound]

I forgot to mention Excelerate's Offshore Regasification:Gateway solution last night. This could, if they decide to expand the natural gas infrastructure, significantly speed things up. Nevertheless, our (Capstone's) reputation with Japan needs to heal and move forward. DJ mentioned about a year ago that due service and other issues they had more or less lost that market, but were diligently trying to regain a foothold. In Japan culture the customer reigns; they don't forget or forgive easily.

Rereading my posting from last night I see a misplaced paragraph (the second to last should have moved up to the 3rd position. That can happen when thinking about trading at the tail end of a nice weekend at mid-night.