NYSEAM:SIF - Post by User
Comment by
yepppon Feb 24, 2006 2:30am
218 Views
Post# 10412929
RE: new sales must be slow..
RE: new sales must be slow..The question is not whether the price being marketed now is high compared to past prices... it is about where the prices will be in the near future.
1. Consider that most new electricity generation plants are fueled by natural gas (due to environmental concerns) and electricity demand is growing quickly.
2. Natural gas prices and demand have been rising steadily for a number of years and not just recently
3. Many countries are building liquified natural gas ports (which is a significantly more expensive source of gas) in anticipation of a shortage and a need to import natural gas from abroad.
4. Even the report commissioned by the Ontario government and prepared by John Manley advised against a reliance on natural gas fueled electricity generation due to fluctuating prices.
4. Many utilities in China are already experiencing a shortage of natural gas and one project (for a natural gas powered electricity plant) was recently called off due to an inability to source the commodity. As they build liquified natural gas ports and pipelines... worldwide demand will grow.
https://www.forbes.com/business/feeds/afx/2006/02/20/afx2539899.html