I owned GMLP for a little bit in the past year, but I sold after not being able to get over the asset concentration in it.
This is a SMALL operation. 5 ships if my memory serves me correctly. while the LNG shipping market is stunningly strong, I can't get over the risk if one of their ships is unable to perform. Whether it is terrorism, maintenance, counterparty risk--whatever. That kind of risk concentration concerns me.
I bring that up simply because oftentimes people look at these like this is another Frontline with a fleet of ships. Though a Fredrikson company, it is just starting out on the dropdown trail.
The other risk, and this one is further down the road, is that the LNG shipping strength is driving a lot of building of new ships.. The crude shipping market was once strong... until the supply of new ships overwhelmed demand. Charter rates have fallen off a cliff. We could see the same dynamic here eventually.
something to keep in mind.