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Prices have gone down, but they are still pretty damn expensive.

It costs you about $3bn for the whole "chain" - for 5bcm (billion cubic meters)

Pipelines cost that much for about 1,000km - to carry 40bcm. Pipelines can be flexible when they plug in a dense network (as in Europe), just like LNG can be flexible when theyre are already more than a few physically accessible alternatives - in the Atlantic basin, for instance (a cargo from Nigeria canbe diverted to the US instead of Europe, for instance, or vice-versa)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Apr 28th, 2007 at 11:14:23 AM EST
[ Parent ]
5bcm vs 40bcm, what is the unit of time? year?

I assume the LNG limit is the producer LNG terminal, right?

Useful tables:

http://www.lngplants.com/conversiontables.htm

by Laurent GUERBY on Sat Apr 28th, 2007 at 11:36:07 AM EST
[ Parent ]
The limit can be any of the links of the chain (the gas feed, the liquefaction plant capacity, the total tanker capacity given the number of tankers you have and the length (and duration) of the rotation, the capacity of the regazification terminal, or the size of the purchase contract at the end.

Most LNG producers engage in "de-bottlenecking" at all times - i.e. precisely increasing the capacity of the limiting link at that time.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Apr 28th, 2007 at 12:04:14 PM EST
[ Parent ]

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