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Can I take a stab? If I just so happen to have decent storage capacity for this gas I could make a killing, except if I did have that storage, I would have alr

Can I take a stab? If I just so happen to have decent storage capacity for this gas I could make a killing, except if I did have that storage, I would have already had long term contracts to fill that storage/keep it full given the uncertainty in Ukraine so there's not really any place for this gas to go, but they're still producing the gas and it's hard to just stop doing that so for a little bit the gas companies were willing to pay people to get this gas off their hands to make room for the new gas they were pumping out. Right?

bluGill 4y ago
Almost. If you had long term storage you would be following the market yourself. There is a good chance that you are the one who paid for this gas months ago when it left port, expecting to sell the gas you currently have in storage and refill it with shipments arriving today. So odds are you lost money today. Note that the above was a good and reasonable bet to make. You should have already known the risk that this would happen and so are not surprised. You still expect to make money of the year, just not as much.
- matai_kolila 4y ago
  Okay, that makes sense. Do people in these situations try to come up with on-demand storage at all, or is that not reasonable given the difficulty of storing natural gas? Like, could you try and load up your idle fleet of containers (truck, ship) on the cheap or are we past that now, hence the negative price?
  - Denvercoder9 4y ago
    Any reasonably-sized storage has already been contracted out in advance, and improvising additional storage capacity isn't really viable given the amounts of gas we're talking about and the environmental laws storage has to comply with. However, what has happened in the past for oil is tanker ships anchoring with a full load just offshore until they can sell the load for a good price. I don't know whether that's also feasible for LNG though, given the boiloff concerns.
    - matai_kolila 4y ago
      Yeah that's what I was thinking, but also using trucks that are for short-term transport as longer term storage could be possible to make a quick buck, but I bet anyone that can do that is doing that heh (or can't if it's not feasible technically).

bluGill 4y ago

Almost. If you had long term storage you would be following the market yourself. There is a good chance that you are the one who paid for this gas months ago when it left port, expecting to sell the gas you currently have in storage and refill it with shipments arriving today. So odds are you lost money today. Note that the above was a good and reasonable bet to make. You should have already known the risk that this would happen and so are not surprised. You still expect to make money of the year, just not as much.

matai_kolila 4y ago
Okay, that makes sense. Do people in these situations try to come up with on-demand storage at all, or is that not reasonable given the difficulty of storing natural gas? Like, could you try and load up your idle fleet of containers (truck, ship) on the cheap or are we past that now, hence the negative price?
- Denvercoder9 4y ago
  Any reasonably-sized storage has already been contracted out in advance, and improvising additional storage capacity isn't really viable given the amounts of gas we're talking about and the environmental laws storage has to comply with. However, what has happened in the past for oil is tanker ships anchoring with a full load just offshore until they can sell the load for a good price. I don't know whether that's also feasible for LNG though, given the boiloff concerns.
  - matai_kolila 4y ago
    Yeah that's what I was thinking, but also using trucks that are for short-term transport as longer term storage could be possible to make a quick buck, but I bet anyone that can do that is doing that heh (or can't if it's not feasible technically).