Under Construction |
Source: Natural Gas - U.S. Energy Information Administration (EIA) - U.S. Energy Information Administration (EIA)
The country is flush with liquie natural gas (LNG)as a result of new and controversial drilling techniques (Fracking) that have enabled energy companies to tap vast supplies that were out of reach not so long ago.
More than half of U.S. households use natural gas for heat, and a quarter of the nation's electricity is made from it.
The price for Liquefied Natural Gas (LNG) in Asia is $12 per per million British thermal units (MMBTU) compared to $3.60 per MMBTU (Henry Hub spot price) in the U.S.. As we start exporting LNG, domestic supplies will be reduced and the price may go up.
My gas bill: Supply: 30 CCF x 1.042 = 31.26 therms x $0.54/therm = $16.88 $0.54/therm = $5.40/MMBPU Delvery: sliding scale based on therms = $18 ($0.54/therm / 100,000 BTU/therm) X 1,000,000 = $5.40 / MMBTUGlossary:
BTU - British thermal units
CCF - Hundred Cubic Feet (my meter reading)
Henry Hub - A distribution hub on the natural gas pipeline system in Erath, Louisiana, owned by Sabine Pipe Line LLC, a subsidiary of Chevron Corporation.
LNG - Liquefied Natural Gas
M - Thousand [Roman Numeral]
MM - Million
Mcf - Thousand cubic feet
MMBTU - Million British thermal units
Therm = 100,000 BPU 1.042 therms per CCF
Return to Finance