Beach Energy (ASX:BPT) signs massive LNG deal with BP for 2023
Stuart Roberts, August 8, 2022
Beach Energy (ASX: BPT) has secured a binding offtake agreement for its 50% share of the LNG to be produced from the massive Waitsia Gas Field in Western Australia. Waitsia LNG is expected to start shipping from the second half of calendar 2023 and BP will now take all of Beach’s share for about the first five years of the project’s life.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
The world is running out of gas
The agreement allows for Beach Energy, which is a Stocks Down Under Concierge stock, to benefit from the currently strong prices for LNG being enjoyed in Asia, but also limits the downside through a price protection mechanism.
Although no price numbers were given, we believe that the company has done well out of the BP deal, with BP likely to be concerned about realisable LNG supply in a world rapidly running short of gas.
Beach Energy (ASX:BPT) share price chart, log scale (Source: Tradingview)
Beach Energy to benefit from sellers market conditions
Selling Waitsia wasn’t going to be hard given the market fundamentals post the start of the war in Ukraine, but the market will like the fact that a single customer took so much of BPT’s product. We believe it is further proof that 2022 is a seller’s market for LNG.
Beach Energy itself noted that it now has exposure to multiple oil and gas prices, which provides a certain hedge against the vagaries of individual product and region exposure.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Recent Posts
Is free brokerage too good to be true? Here’s how stock brokers make money off you
Free brokerage is one of the key promises used by brokers to attract new clients. As one of the biggest…
EBITDA can be a powerful metric if you use it wisely. Here’s 2 key things you need to know
ASX investors will frequently hear companies talk about EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) as well as its…
What is short selling and can retail investors make a buck doing it?
Short sellers are one of the most mysterious, but most powerful actors in the markets. They have been known to…