Nope lets hope it don't keep goin to much higher - cause our tollers wont make any money shipping overseas and then wont want the US gas and wont want it liquefied BY LNG FOR OUR TOLLING FEE.
US NATURAL GAS at $6 per mill for next 20 years and overseas prices at $4 per mill - no price arbitrage - destroys LNG BUSINESS MODEL -- LNG BANKRUPT
This is a crude simple example but the point is our tolling customers want to ship the gas to other countries who will pay more than the US NAtural gas price - shipping and margin to the tollers.
This is TRADE 101 folks - You ship a good one country to another - because you buy it for $1 in Country A AND sell for $4 and assume that incidentals are minor ie less than $3.00
Bluntly a high US Natural Gas Price destroys the LNG Business model if global prices stay low.
WHY CAN PEOPLE NOT UNDERSTAND THIS ??
Apologies for capitals - Simply tired of reading the daily hoorah about rising US natural gas prices - all else remaining equal this is bad news for LNG !!!
Nope lets hope it don't keep goin to much higher - cause our...
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