VOG 2005 New Thread

Yep, kgab... i think that's a pretty good indicator... and one I use when choosing to take a position, or not!

Is $230/mcm a reasonable price (equivalent to 37 pence per therm at a forex of $1.75/GB£) to ask the Ukrainians to pay when bulk gas, like that purchased from Turkmenistan is selling at approx. 10.5 p/therm ($65/mcm)? I think not; it is Gazprom's negotiating headline price which helps to show the Ukraine what a weak positions it's in - as was said above, either it can pay that price ... or nothing... and receive no gas!
What this bears on VOG is clear as VOG will be a price-taker from Gazprom as the monopsonist buyer... and we all remember what that meant when the UK last had a monopsonist buyer (British Gas)... it only bought gas when it wanted to... and at a price IT determined. I would guess that, if I were Gazprom, I would buy VOG's gas at the marginal cost of production in the area, and no more!! I wonder what that would be... 0.5 US cents/mcf...??