BTU – Definition and Pronunciation

Examples of BTU

There is no internationally accepted price of natural gas at the wellhead, but in most foreign markets gas supplies – including LNG – are price linked to alternative energy sources on a BTU-equivalency basis.

From Critical review of components of the LNG import system“Components of LNG and main aspects of the liquefied gas import system”.

For excess LNG that has not been contracted on a long term or destination-specific basis, prices in most key consuming markets, such as Europe or Asia, have fallen from a high of $10-$15 per million British thermal units (MMBtu) to below $5/MMBtu at times for certain destinations, and while this remains above the marginal cost of production for some projects, it typically falls well short of the whole-life costing of an LNG project, once amortization of capital and loan repayments are taken into account.

From Global gas market and history of LNG/LPG consumption“Global Gas Market and natural gas development projects”.

This is why the LNG unit of sale is based on calorific value expressed in million BTU per unit of volume.

From The International Trade LNG and LPG“International maritime trade of LNG and LPG – key points”.