SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Peter W. Panchyshyn who wrote (1382)9/9/2001 11:36:24 PM
From: VisionsOfSugarplums  Read Replies (3) of 11633
 
There is no way that contract is priced in US Dollars at Empress. Ex/ Spot price at Henry Hub, major
market centre energywindow.com
$2.34 US/mmbtu
x $1.5665 Cdn/US exchange
x 1.052 conversion mmbtu to GJ
x 1.03 higher heat content adj (can't remember exact #)
= $3.97 Canadian/GJ
- 1.121 Cdn $ differential to Empress (ie/transportation
to get it to Henry Hub)
see here psac.ca
- $0.31 volume and heat conversion incl in FE differential
= $2.54 $cdn/GJ close enough to the $2.49

If the Empress contracts were priced in
US dollars, that price wouldn't make sense.
It'd be too high. The price is tagged off
of the US market but transportation must
be paid to actually get it to that market
(or vice versa). So, if that price were
in US dollars the gas wouldn't leave the
province (because why would I ship the
gas to the US, and incur the transportation
cost, when I could sell it here at a price
better than Henry Hub? - ie/empress $2.49
vs $2.34 at HH on Sept 7)

Differential is normally comprised of
exchange conversion (split out here),
transportation costs from Empress to
Henry Hub, and supply demand factors
(ex/ premium/discount to tariffs depending
on supply/demand and storage levels.)

t.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News