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

To: Ed Ajootian who wrote (62667)	4/12/2006 7:45:18 AM
From: quehubo	Respond to of 206121

Ed: Most LNG deliveries to USA I believe are firm commitments, Europe is now likely the global price setter for spot LNG after their very cold Winter, SK and Taiwan are competing for lower volumes? Did you see the comments that US Q1 LNG deliveries are way down? LNG is not going to be a large influence on this market for years to come if ever. Also you are correct another factor I believe for Asian firm commitments is the link to crude oil prices/products.

To: Ed Ajootian who wrote (62667)	4/12/2006 7:55:54 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 206121

>> 1) Why would April LNG be going for $9-10/mmbtu? This price is well in excess of Henry Hub, << The Henry Hub price is irrelevant to world LNG prices except possibly as a floor price. We don't export LNG from Louisiana so the fact that gas costs less at Henry Hub means nothing to Asian buyers. >> 2) Is the main driver of LNG prices presently just the btu-equivalent price vs. oil? << Yes. The price Japanese electric utilities pay under their long term contracts is based on a complicated formula that is linked to the price of oil. >> 3) If the going rate for Atlantic Basin LNG is really $9-10 this month, why would any US LNG terminal take in any cargoes for this month << Gas under long term contractual obligations will come in. Spot cargoes won't if there is tanker time available for the longer journey to Asia.