re: new contracts price pj, page-3

re: new contracts price pj Emklien,
You may be close but my calculations (below)
suggest that it might be a bit high.

1 watt-second = 1 joule
1kwh = 60*60*1000 =3,600,000 joules
power stations operate at about 30-40% efficiency
so say it takes 10,000,000 joules of gas for 1kwh.

from www.uic.com.au/nip37.htm

(Much electricity in Australia is now traded so that distribution companies buy at the best price available from hour to hour from competing generators. In cents per kilowatt hour some 2004 pool prices were:
Average Victoria 2.8 c/kWh
Average NSW 3.9 c/kWh
Average Qld & SA 3.2 c/kWh)

The power companies have to pay for the infrasture and running costs of the power stations and also
make a profit which suggests that they must buy the
gas in Queensland for the order of say 2 -2.5c per
10mj or $2-2.5 per gigajoule or $2-2.5m per petajoule.

Please note
1 These are 2004 prices they may have
gone up a bit in the last two years.

2 Peak prices for electricity can be very high so
a gas producer may be able to cash in on this,
particularly as gas fired station outputs can be
adjusted quickly.

3 These are my best efforts in trying to put a value
on QGC. I am not an expert on the subject so don't
rely on this information for your investment decisions.