Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: PapaBear3625

Not how LNG maket works, the people who make LNG at the end of a natural gas pipeline buy in spring for summer and fall delivery typicaly in a location right next to a LNG carrier (a very specialized ship). They compress and cool NG when electricity or natural gas is near free to them. The speed at which NG is extracted from the ground and “proven reserves” tax wise is entirely by demand. There are storage fields but these serve as buffers and suppliers to the spot market. The gas pipeline companies have increasable delivery volumes to port locations that chill and compress LNG.

The storage technology of LNG also serves to stabilize prices of a US market that varies by as much as 60% per day in the winter. Brexit allows the english to once again tap the north sea when dollar signs appear on the spot delivery market, and hell russian gas is unstable.....right?

Putin played right into western NG suppliers hands until he leaves.

Do you buy your buy propane for home heating in early April, June or October? When I had the big bottle I signed a contract in late May, the service firm kept the bottle full.

The EU customer is no different, they buy a series of delivery contracts that are cheaper than the day to day spot price. They charge their customer the spot price if allowed by regulators. The item in limited status is the storage.


10 posted on 03/19/2022 4:08:30 PM PDT by protoconservative (Been Conservative Before You Were Born )
[ Post Reply | Private Reply | To 2 | View Replies ]


To: protoconservative
Not how LNG maket works, the people who make LNG at the end of a natural gas pipeline buy in spring for summer and fall delivery typicaly in a location right next to a LNG carrier (a very specialized ship). They compress and cool NG when electricity or natural gas is near free to them. The speed at which NG is extracted from the ground and “proven reserves” tax wise is entirely by demand. There are storage fields but these serve as buffers and suppliers to the spot market. The gas pipeline companies have increasable delivery volumes to port locations that chill and compress LNG.

Still, as demand for overseas delivery rises, and domestic production falls, prices to US customers will rise. Maybe not today, but they will.

15 posted on 03/19/2022 4:25:01 PM PDT by PapaBear3625 (We live in a time where intelligent people are being silenced so stupid people won’t be offended)
[ Post Reply | Private Reply | To 10 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson