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Enron Mail |
Clayton,
I agree. This would happen when there is an insufficient pipeline capacity to move gas. The market developments you describe happen quite often and this is one of the reasons we want to have the model you are working on. Vince Vince Clayton Vernon@ENRON 01/17/2000 09:30 AM To: Vince J Kaminski/HOU/ECT@ECT cc: Subject: one more thing Vince- I forgot to mention to you one other development I propose, a theory I call "uncoupling" of basis. As an example, severe cold weather specific to the Midwest can result in an elevation of spot market prices at Henry Hub, where prices elsewhere in the Northeast are such that the basis appears to be less than the commodity charge to ship gas from Louisiana to the Northeast. This can happen when gas is not being moved in the spot market from Louisiana to the Northeast at that time. The notion of "equilibrium" cannot, in my view, always assume "spot" gas is flowing along all nodes of the network. Clayton
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