Industry will pay most of Algeria LNG price hike
Industrial users will pay most of the fivefold incremental price increase in Algerian liquefied natural gas (LNG) recently approved by the Economic Regulatory Administration (ERA). The three affected gas-importing companies - Columbia LNG Corp., Consolidated LNG corp., and Southern Energy Co. - are major suppliers for eastern and southern states. They will be paying $1.94 per million Btu (mmBtu) (increase of about 80 cents) and will be allowed to charge $3.64 per mmBtu. Additional increases will be tied to the cost of imported oil for the next 23 years and will allow LNG to compete with residual fuel oil and future gas imports from Canada and Mexico. The price increase will be passed on immediatley to consumers, but the major impact will be felt in November when Phase II takes effect and more users become eligible for incremental pricing. ERA argues that LNG will be too heavily subsidized by domestic fuels if the price continues to be rolled-in with other pipeline supplies and this will delay conversion to alternative fuels. (DCK)
- OSTI ID:
- 5366177
- Journal Information:
- Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 5:2; ISSN EUSND
- Country of Publication:
- United States
- Language:
- English
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030400* -- Natural Gas-- Products & By-Products
030600 -- Natural Gas-- Economic
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29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
ECONOMIC IMPACT
ECONOMIC REGULATORY ADMINISTRATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INCREMENTAL-COST PRICING
LIQUEFIED NATURAL GAS
NATIONAL ORGANIZATIONS
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
PRICES
REGULATIONS
US DOE
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