Flotilla of LNG Tankers

[errolanderson]

There may be more than 30 tankers with U.S. LNG heading for Europe right now.

European natural gas prices exploded above $55/MMBTU last week, more than doubling the Asian price. The flotilla of ships in-transit has been enough to lower EU gas prices steadily this week, but may just temporary price relief.

Meanwhile, here at home Suffield/Consort spot prices hovering around $4/MMBTU. Another missed opportunity for Canada . . . .

[sumdumguy]

There may be more than 30 tankers with U.S. LNG heading for Europe right now.

European natural gas prices exploded above $55/MMBTU last week, more than doubling the Asian price. The flotilla of ships in-transit has been enough to lower EU gas prices steadily this week, but may just temporary price relief.

Meanwhile, here at home Suffield/Consort spot prices hovering around $4/MMBTU. Another missed opportunity for Canada . . . .

No problem, we’ll keep the natural gas and Europe and Eastern Canada can use solar and wind. Eastern Canada has lots of trees too. Here, around our area, all the trees have been planted.

[bucket]

It is sad that the fertilizer manufacturers of nitrogen in Canada are allowed to use European nat gas prices for pricing urea here in Canada.

The same fertilizer manufacturers that proclaim there could be a food crisis in the coming months or years due to high fertilizer prices that his company sets the price on.

The Yara CEO could have twinned the plant at Belle Plaine and sold more fertilizer for less to avoid the food crisis.

But who is he kidding , it isn't really about food.

[farming101]

If that $55 could be captured that would arbitrage very well. Cost of shipping would be chump change

Back of the envelope figuring, a large 170,000T ship should have it's cargo increase in value by around 190 million
Meanwhile those 3.65 Feb calls are still underwater

[Hamloc]

Yes Errol Canada’s inability to approve LNG export facilities was and is a lost opportunity but when I compare what I payed per gigajoule for natural gas to heat my house and shop last December to this November here is the price comparison. Last December $7.28 a gigajoule, this November $11.43 a gigajoule, an increase of 57%. What would it be if I had to pay world prices for natural gas? And it will go higher as Justin Trudeau’s carbon tax goes higher this spring!

Price breakdown per gigajoule
Admin. charge $.89
Cost of gas……$5.54
Gas cost Recov$.35
Delivery…………$2.55
Carbon tax……$2.103

[Old Cowzilla]

Guess I can't bitch about my wood pellets going up 12% most of that would be freight anyway.

[Wheatking]

I said it before and I'll say it again. If the stupid government won't let us export it, they should promote using it here and exporting the finished product as N, or any manufactured good for that matter. Probably don't even need any subsidies to açcomplish this. Could just reduce the regulatory burden on getting a plant built. It could give the carbon tax back to manufacturers so they could expand with more carbon friendly Nitrogen producing plants.


There are lots of ways to help out the industry to use domestic natural gas, but our government would rather import so the carbon isn't on our books. Bunch of idealogues running the country would rather cut off our nuts in the name of carbon than promote any kind of export, or any industry for that matter. What pisses me off is we could develop carbon friendly industry, and yet they would rather spend the carbon tax buying votes in the east.