Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Second_Titan who wrote (81957)	12/19/2000 5:36:46 PM
From: Douglas V. Fant	Read Replies (1) of 95453

Quehubo007, Thanks for the insights on combined cycle turbines. I've been working on some distributed generation projects, gas supply and power supply contracts over the last few weeks. Pretty consistently power generated at DG projects is getting inked at the 5cents/kWh range for peaking and slightly lower in the 4 cents/kWh for baseload configurations. Applying average turbine efficiency factors to these prices and assuming 1000 BTU pipeline quality gas, and then calculating backwards to the assumed NG contract price, that suggests to me that natural gas prices should settle out in the $4.00-$4.24/mcf range past the current spike....

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