Message-ID: <3046377.1075845386632.JavaMail.evans@thyme>
Date: Fri, 20 Apr 2001 21:15:00 -0700 (PDT)
From: paul.y'barbo@enron.com
To: wayne.perry@enron.com, dan.masters@enron.com
Subject: EcoElectrica Winter Cargo - Jan 2002
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Note:

It is not too early to be thinking about the possibilty of buying a replacement Winter LNG cargo for the Eco project (see Article 12.3 (b) (iv) of the Cabot contract). My interpretation of the contract is that you avoid the Commodity Charge, Commodity Surcharge, Demand Charge, and Demand Surcharge on one Standard Cargo if Cabot cannot commit to Delivery of the Winter Cargo. For 2002, these add up to over $7.00/MMBtu based on current estimates of how 2001 prices will settle. December/January Nymex prices are ~$5.60/MMBtu. I believe that should mean that Puerto Rico should be able to land a cargo at near $5.00. 

We can discuss the hedges you would need to put in place to secure the benefit of buying the replacement cargo.


Paul