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.