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epistasisyesterday at 7:02 PM0 repliesview on HN

LNG may be priced internationally to some degree, but local distribution of gas by pipelines drastically changes that equation. It may only be a few dollars per barrel to transport a barrel of oil, but LNG is far higher due to the massive liquefaction costs. As an indication of just how much natural gas is not priced internationally, US Henry Hub is down around $3/MMBTu, while UK NBP prices are around $14/MMBtu, if I did that correctly.

When you say that distribution costs for the UK are much less than in the US, do you mean the cost of distributing natural gas? I'm not following your logic there.