The Mudcat Café TM
Thread #109148   Message #2279303
Posted By: Q (Frank Staplin)
04-Mar-08 - 12:04 PM
Thread Name: BS: NAFTA and the Primaries
Subject: RE: BS: NAFTA and the Primaries
"The Canadian and the U.S. natural gas markets operate as one large integrated market." Quote fron the Canadian NEB (National Energy Board).
www.neb.gc.ca/clf-nsi/rnrgynfmtn/prcng/hwcndnmrkswrk-eng.html

"The price is made up of three parts: the cost of the natural gas (known as the commodity cost), the pipeline transportation cost and the distribution cost." The commodity cost changes in response to supply and demand and can be volatile, transportation and distribution costs are regulated by government agencies.

Natural gas is traded on the New York Mercantile Exchange. In Canada, it is traded based on the AECO-C hub in Alberta. Trades are made in U. S. dollars. Trading units are 10000 million British thermal units on the NYMEX (open outcry trading 9:00An-2:30PM, NY time).
Call your commodities trader and become a part of the market, then you will want a good price increase and tough shit to the consumers!

The near equivalence of the Canadian and American dollars means a similarity in price on both sides of the border.