Natural Gas price (converting from cubic meter to mmBtu)

Discussion in 'Commodity Futures' started by number22, Jun 24, 2010.

  1. I have this question for some time, I am not too sure current price of natural gas between North American and European. By the way, why do they use cubic meter instead mmbtu? This is very confusing to figure out the difference between prices.

    1 NG contract = 10,000 mmBtu = 27,777.78 cubic meter (I use 1 cubic meter = 36,000 Btu)

    if Russian is selling $235 per 1000 cubic meter to some country, which makes 1 NG contract only cost $6527.78 ( 27,777.78 / 1000 x 235).

    and even if Russian is selling $480 per 1000 cubic meter to Germany, which is making like 1 NG contract only worth about $13,333.

    Why Russian gas is much cheaper than North American? or did I get my number wrong somewhere?
  2. find a better on-line calculator tool for natural gas, my last post number is way off.

    10,000 mmBtu = 283200 cubic meter

    4.87 x 10,000 mmBtu = $4,8700 per NG contract

    $4,8700/283200 x 1000 = $171.96 per 1000 cubic meter

    Should just use the ratio 1:28.32, then use today's natural gas price divide 28.32, then multiple by 1000 to get the price in per 1000 cubic meter.