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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 (62670)	4/12/2006 9:24:22 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 206131

>> Dennis, regarding my question #1, take a look at the story I pasted in message #54467, particularly the bolded part.<< I'll repeat the bolded part here and comment. The US is becoming the “central bank” for LNG as spot trade worldwide occurs with reference to US prices. As long as there is spare regasification capacity, the US market will represent “the opportunity value for spot cargoes.” The first part of the statement. "The US is becoming the “central bank” for LNG," is just silly. How can you act as a central bank if the only possible transactions are in one direction only? The Lower 48, Canada, and Mexico only have regasification capacity and no liquefaction capacity. Gas can only come into the system and not out. No matter how low the price of gas goes at Henry Hub, you can't get that gas to Europe. The second part of the statement could have been more clearly written as "As long as there is spare regasification capacity, the US market will represent the floor price for spot cargoes."