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Energy Transfer Partners, L.P. Message Board

  • capt317 capt317 Jul 30, 2010 12:07 PM Flag


    I don't see u post anymore.Hope u r still around. Was wondering how you felt about Natural Gas Act,now in congress? Looks like ETP,with all its miles of pipeline ,would be an ideal distributer of NG.

    Hope to hear from you.


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    • capt317 asked: "Was wondering how you felt about Natural Gas Act, now in congress?"

      Are you are referring to the bill supported by Senate Democrats that will "give grants of as much as $50,000 to companies that put natural gas refueling stations into service between 2011 and 2015"?

      [1] Those grants are not in the House bill.

      [2] I have no idea what the final bill would look like.

      [3] I currently have the impression that such a reform will not have a major impact on natural gas use - but I do not know and could easily be wrong about that. If enough fleets convert, the impact could be huge. But what size of government subsidy / grant would be required to do that? What is the cap on the proposed subsidy? What percentage of an increase in natural gas use would such a bill produce?

      Would the success of such conversions depend more on the size of the subsidy or the lack of companies with fleets getting longer term contracts [getting a fixed price over a period of years] on natural gas? And if customers need fixed prices, what access to hedges would need gas providers need - and is congress working in the opposite direction to such purposes with their regulations on derivatives?

      [4] I think that the supplier - to those companies that make changes in their auto fleets - would be the same as the ones currently supplying natural gas to customers already. But ETP is probably the source of molecules to those companies. At this point in time, I do not see that the passage of the $50K rebate would cause pipeline companies line ETP to build new pipes for those customers.

      Your question is well outside the area of my expertise - and I am not giving the issue much thought at this time. I will wait until the MLPs and their analysts that cover them start talking/writing about the issue. I am not going to guess about the impact of such legislation until companies that would directly be influenced by it [in other words - better sources of information] start giving their information.

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