Introduction
Trade across the Atlantic has been very profitable
for such companies as BG, SUEZ, and BP. With the
opening of the first terminals along the west
coast of the Americas, traders in the Pacific
may have similar opportunities. Currently, Asian
and American gas prices vary widely. Last October
after Hurricane Rita, for example, U.S. prices
nearly tripled those in Japan.
It is these differentials that create excellent
arbitrage opportunities for traders that can access
both markets. Costa Azul will be the first terminal
to connect North America to the Pacific and Middle
Eastern LNG. Other terminals, in Mexico, Canada,
the United States and Chile are advancing rapidly.
Some of those terminals, such as Manzanillo, will
have fairly direct pipeline access to markets
served by Gulf Coast terminals, thereby completing
the circumference of the global LNG trade. How
and when these receiving terminals will open and
their effect on Pacific LNG and North American
gas trade is an important topic for discussion
during this conference.
The states and provinces of Brtish Colombia,
Washington, Oregon, California, Baja, and Colima
consume about nine billion cubic feet of gas per
day (65 million metric tons of gas per year --
mty). This is roughly the size of Japan's market
at 75 million mty. Both experience surges in demand
during winter, commonly exceeding 11 bcfd. Gas
storage will be a critical issue for serving the
Pacific market until ample demand develops south
of the Equator.
Another key issue before the conference, therefore,
is how LNG will impact Western U.S. gas flows.
Pipeline pinchpoints, expansion plans and reversals
will be examined. Join us for what promises to
be a most enjoyable and informative conference. |
