Dominion: A Play On Natural Gas Price Disparity
By Katchum:I noticed that the spot natural gas price in the US is going down, while the Russian natural gas price is going up. Both natural gas prices started at US $290 per thousand cubic metres in the beginning of 2007. Today Russian natural gas is 4 times more expensive than US natural gas.
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Russian Natural Gas Price (US $ per thousand cubic metres of gas)
A possible reason is that US shale gas finds have been increasing dramatically in the last few months, putting pressure on American natural gas prices through higher natural gas production.Also, Russia's natural gas prices were artificially cheap during the year 2000 and onwards. From 27 May 2007, though, Mikhail Fradkov passed a decree #333 which increased Russia's natural gas price to parity with Europe's natural gas.AsComplete Story »