05.07.2009

The calorific value of a fuel is the quantity of heat produced by its combustion – at constant pressure and under conditions known as “normal ” of temperature and pressure (i.e. to 0oC and under a pressure of 1,013 mbar).

The combustion of a fuel product generates water vapor. The Higher Calorific Value supposes that the water of combustion is entirely condensed and that the heat contained in the water vapor is recovered.

The Lower Calorific Value supposes that the products of combustion contains the water vapor. The heat contained in the water vapor is not recovered.

When discussing the price of natural gas it is also important to know what price is quoted, i.e. the higher heating or the lower heating value

High voltage is defined as circuits of more than 1000 V for alternating current and at least 1500 V for direct current, although in the US high voltage is any voltage over 600 V

As per Gas Law: pressure greater than 16 bar in the transmission system

High efficiency means that a power station is able to use relatively lower amounts of fuel.

Such as in the generation capacity of CCGTs is of a high efficiency in the order of 55-65% compared to 38-39% efficiency in the existing fuel oil and coal stations

The Henry Hub spot price averaged $9.13/Mcf in 2008 but ended the year averaging $5.99/Mcf in December. The US Energy Information Administration cut its projected 2009 average Henry Hub spot price to $5.78/Mcf in January ($5.52/MMBtu) from its December forecast that prices would average $6.25/Mcf this year. Prices are expected to begin to increase in 2010 as the economy improves. EIA predicted prices to average $6.63/Mcf in 2010. Henry hub is the key marker for prices in the states, but the prices in the states are not necessarily the key indicator for prices in the rest of the world. If there is a lot of demand in Europe and in the States the gas will tend to go to Europe because the prices will tend to be higher. HH denotes the prices in the swing market in the states. Swing market is a market where there is a large potential ability to put in and extract quantities from the market place and thus prices will tend to fluctuate. Europe is more driven than the US by direct relationship between oil and gas. Much more of the market in the states is driven by a supply demand spot market and so the US market is the market of last resort in the Atlantic.