Great writeup. What caught my attention is how TotalEnrgies seems to be playing both sides here, financing Phase 1 AND having a SPA as a buyer. Smart way to lock in supply while getting a piece of the upside. Their 10% stake in Trains 4 and 5 seems small though compard to the early position. Wonder if they're hedging against execution risk or just prioritizing capital for their own renewable projects elsewere.
Agreed. It is quite interesting, and as an early 30s generalist investor, I have absolutely no inside baseball to comment with conviction.
As to your query, I imagine it is a bit of both hedging and prioritizing other investments...
Frankly, the more I learn about the natural gas space the harder it seems to invest in. I like this stock and VG a bit too on the legal overhang, but it would be really nice from a risk reward perspective if they got a lot cheaper in the next year.
Great writeup. What caught my attention is how TotalEnrgies seems to be playing both sides here, financing Phase 1 AND having a SPA as a buyer. Smart way to lock in supply while getting a piece of the upside. Their 10% stake in Trains 4 and 5 seems small though compard to the early position. Wonder if they're hedging against execution risk or just prioritizing capital for their own renewable projects elsewere.
Agreed. It is quite interesting, and as an early 30s generalist investor, I have absolutely no inside baseball to comment with conviction.
As to your query, I imagine it is a bit of both hedging and prioritizing other investments...
Frankly, the more I learn about the natural gas space the harder it seems to invest in. I like this stock and VG a bit too on the legal overhang, but it would be really nice from a risk reward perspective if they got a lot cheaper in the next year.
Thanks for reading!