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

To: JimisJim who wrote (98414)	3/28/2008 3:07:47 PM
From: Elroy Jetson	Respond to of 206223

Currently, domestic gas is about half the price of LNG delivered to California. Perhaps the visionaries who wish to build LNG terminals in California are correct that eventually there will be a single global price for all hydrocarbons or that the large supplies available in eastern Asia, Sakhalin Island and Oceania will cause prices of LNG gas to drop. cpuc.ca.gov Sempra (SDG&E) is one of the LNG importers who obtained a long term contract (20 years) with BP which locked in a discount to US domestic prices, should BP choose to supply any LNG to the Sempra terminal in Mexico. If BP chooses not to sell any LNG under these terms, they are required to make infrastructure payments on the LNG facility in Mexico. BP will obviously make their decision to send LNG to Sempra or not based on the price spread. .