by Chris Becker
From renowned China bear Jim Chanos comes this missive regarding LNG:
Chanos’ view ties in almost exactly with the MB playbook. Highlights:
- LNG is playing out like iron ore excess that was seen five years ago
- doubling of LNG supply over next four years as demand wanes
- “incredibly expensive” LNG plants won’t recover cost of capital
- was seen as “safe play” with longer term contracts, these are now being renegotiated
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A few more words on China to sour your morning breakfast!