Belmont Club

By Richard Fernandez

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The war in the ether

August 12, 2008 - 3:47 pm - by Richard Fernandez
Gern Blanstein
2008-08-12 22:10:29

To all you thinking that Russian LNG will be flowing to our shores anytime soon (pervious post now closed), please consult the forward curves for said natural gas across the globe … LNG shipments are not down to the US for a lack of regas facilities, the rest of the world is paying twice what we are, $20/MMBtu vs. around $9.5/MMBtu winter gas. Why ship to the US at these North American prices when the UK/EU/Japan/South Korea look so good?

One of the greatest energy follys of the last decade and a half is burning natural gas to turn turbines for electricity on this continent. We will truly regret this in the years to come.