Speculation On Terms Of That Russian-Chinese Natural Gas Pipeline Deal

Updates

Later, 5:17 p.m. central time: we got the answer -- or $9.50 to $10 per thousand cubic feet.
 

Original Post

 

For background, see this post on the Russian-Chinese natural gas pipeline deal-in-progress. 

Someone who understands natural gas pricing better than I writes succinctly, if the deal gets done:

• If price is $9 per mmbtu then China has really played hardball. 
• If price is $11 per mmbtu then Russia has really won. 
• If between then they are working together. 

In North Dakota, a reader writes his natural gas bill:

• $8.18 per mmbtu which includes a basic service charge, and a distribution fee per mcft.
• the actual cost of gas was $ 6.76 per mcft.

Now, we just have to watch if the deal gets signed, and if the terms are announced. I will have to rely on readers to watch the trade journals. 

[1 mcft = 1 mmbtu]