Liquefied natural gas company Golar LNG (GLNG) pops 4.7% premarket on reports that billionaire...

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Adam101 Comment (1)
 
Though positive for the natural gas sector, how will Fredriksen's expansion affect the UNG position with its inverted futures posture?
16 Mar 2011, 09:36 AM Reply Like

Herr Hansa Comments (2922)
 
I don't see how it would impact UNG nor natural gas futures in any way. Golar LNG (GLNG) transport LNG, develop floating production storage and offloading LNG tankers, and develop floating LNG power plants. LNG cargoes are unlike oil and refined products cargoes in that once a port destination is determined, an LNG tanker rarely ever diverts from that destination due to safety requirements. This is also why there is almost no spot market for LNG cargoes, and most LNG ships are under longer term charters. It does seem that some of those charters are able to contract short term changes to make more deliveries to Japan, though I have yet to find a good source to quantify the accuracy of that.

John Fredriksen has also been on the move with refined products tankers, with a possibly over 5% position in Danish product tanker giant Torm (TRMD). That position is not fully confirmed and might be through his holding company, or through oil tanker giant Frontline (FRO), which he founded.

www.bloomberg.com/news...

Disclosure: positions in several Fredriksen companies including Frontline (FRO), Ship Finance International (SFL), Golar LNG (GLNG), and also a position in Torm (TRMD)
16 Mar 2011, 06:36 PM Reply Like