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Enron Mail |
Stinson/Vince,
I think this is important to know. Regards, Sandeep. ---------------------- Forwarded by Sandeep Kohli/ENRON_DEVELOPMENT on 03/28/2001 08:23 AM --------------------------- Anshuman Srivastav 03/28/2001 06:32:20 AM To: Marc De La Roche@ECT cc: Tushar Dhruv@Enron, Doug Leach@ECT, Mohan Gurunath/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rajesh Sivaraman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Shubh Shrivastava/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mukesh Tyagi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT (bcc: Sandeep Kohli/ENRON_DEVELOPMENT) Subject: Hedging LNG Volumes Hi Marc, DPC would like a swap to hedge its price expsoure on LNG. We do understand that there exists a basis risk between JCC (the LNG SPA index) and Brent (the market index for the product) and will bear such risk. We also appreciate the fact that this is a financial product and irrespective of actual consumption, we will still have to bear the burden (if any) of the swap. Fuel - LNG indexed to JCC (closely correlated to Brent Futures) Period Volumes (TBtu) Volumes(MT) Volumes(JCC Bbls) January 2002 to December 2002 33.61 650,000 9,127,049 January 2003 to December 2003 48.63 940,000 13,207,496 January 2004 to December 2004 48.63 940,000 13,207,496 Crude Swap Price: Can we look at a 'dirty' hedge and get a crude($/Bbl) swap price. Like any other regular swap, this will be a monthly settle product. The above conversions from MT to Bbls are based on LNG conversion factors. (14.04 Bbls/MT). We also would like to understand the requirements of the Credit Group to put this hedge in place. Please indicate the process as well as the security mechanisms to provide adequate credit support for the swap. Please call me(98210 38711) or Rajesh (98201 88310) for any additional info. Regards, Anshuman
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