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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: WWS who wrote (25835)	9/22/2003 7:44:14 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 206084

About 10 percent of the world LNG trades in the spot and short-term market and is growing. Spot gas flows to where ever the price is highest and the facilities for its importation exist. >> In order for the mechanism that you envision to work, wouldn't we have to assume that an awfully large proportion of all possible LNG cargoes would be for sale on the spot market, and not otherwise restricted as part of long-term supply agreements? << Its not the largest proportion of source that sets the market price, but the marginal utility of the extra supply brought in by higher prices. Old long term supply agreements entered into in order to get existing facilities financed and built are expiring and the new ones don't tie up all the capacity.