Monthly citygate prices at major US metropolitan areas. Monthly Weighted Averages. Weighted average gas prices for each of the last 12 months, the prior year, and YTD for the current year at locations across the US and Canada. Composite Spot Wellhead Prices. Monthly and annual composite spot wellhead prices spanning the last 15 years. Composite Spot Delivered. Monthly and annual composite delivered prices spanning the last 15 years.
Monthly Gas Price Trends. This month's regional price trends at different points in the natural gas supply chain. Monthly Comparative Fuel Prices. Data Snapshot. Natural Gas Intrastate Gas Prices. This week's prices and differentials between major natural gas hubs in the US and Canada. Natural Gas Weekly Spot Prices.
This week's natural gas weekly spot prices for interstate pipelines in the US and Canada. Key Weekly Spot Prices. Comparative Fuel Prices. How this week's average coal and petroleum fuel prices compared to natural gas market prices.
Gas Price Report. Canadian Price Report. Prior to the deregulation of the natural gas commodity market and the introduction of open access for everyone to natural gas pipelines, there was no role for natural gas marketers. Producers sold to pipelines, who sold to local distribution companies and other large volume natural gas users. Local distribution companies sold the natural gas purchased from the pipelines to retail end users, including commercial and residential customers.
Price regulation at all levels of this supply chain left no place for others to buy and sell natural gas. However, with the newly accessible competitive markets introduced gradually over the past fifteen years, natural gas marketing has become an integral component of the natural gas industry.
In fact, the first marketers were a direct result of interstate pipelines attempting to recoup losses associated with long term contracts entered into as a result of the oversupply problems of the early s.
To learn more about the history of natural gas regulation, click here. Natural gas marketing may be defined as the selling of natural gas. In even looser terms, marketing can be referred to as the process of coordinating, at various levels, the business of bringing natural gas from the wellhead to end-users. The role of natural gas marketers is quite complex, and does not fit exactly into any one spot in the natural gas supply chain. Marketers may be affiliates of producers, pipelines, and local utilities, or may be separate business entities unaffiliated with any other players in the natural gas industry.
Marketers, in whatever form, find buyers for natural gas, ensure secure supplies of natural gas in the market, and provide a pathway for natural gas to reach the end-user. It is natural gas marketers that ensure a liquid, transparent market exists for natural gas.
Marketing natural gas can include all of the intermediate steps that a particular purchase requires; including arranging transportation, storage, accounting, and basically any other step required to facilitate the sale of natural gas.
Essentially, marketers are primarily concerned with selling natural gas, either to resellers other marketers and distribution companies , or end users. On average, most natural gas can have three to four separate owners before it actually reaches the end-user. In addition to the buying and selling of natural gas, marketers use their expertise in financial instruments and markets to both reduce their exposure to risks inherent to commodities, and earn money through speculating as to future market movements.
To view statistics related to the selling and marketing of natural gas, including prices and volumes, click here. In order to more fully understand the role and function of natural gas marketers, it is helpful to have an understanding of the basics of natural gas markets.
Natural gas is sold as a commodity, much like pork bellies, corn, copper, and oil. The basic characteristic of a commodity is that it is essentially the same product no matter where it is located. Natural gas, after processing, fits this description. Commodity markets are inherently volatile, meaning the price of commodities can change often, and at times drastically. Natural gas is no exception; in fact, it is one of the most volatile commodities currently on the market.
The graph below shows the. The price of natural gas is set by market forces; the buying and selling of the commodity by market players, based on supply and demand, determines the average price of natural gas. There are two distinct markets for natural gas: the spot market, and the futures market. To get the price of natural gas on a specific day, it is the spot market price that is most informative. The futures market consists of buying and selling natural gas under contract at least one month, and up to 36 months, in advance.
For example, under a simplified futures contract, one could enter into an agreement today, for delivery of the physical gas in two months.
Futures contracts are but one of an increasing number of derivatives contracts used in commodities markets, and can be quite complex and difficult to understand. Fuel loss is generally expressed as a percentage of the quantity received into the pipeline or LDC.
To calculate fuel loss based on the delivered quantity, divide the delivered quantity by 1 minus the fuel loss percentage, then subtract the delivered quantity. A derivative transaction between two counterparties wherein the seller agrees to fix the price for a predetermined quantity of an underlying commodity, security, bond or currency in a specified delivery period.
The buyer becomes "long" the futures position while the seller becomes "short. Futures are traded exclusively on regulated exchanges such as the NYMEX and traders settle up with the exchange each day based on the market value of their positions. A natural gas industry trade journal published each business day by Platts. In each issue, Gas Daily publishes the results of a phone survey of traders and other industry participants.
The survey provides indicative prices for next day physical natural gas delivered to a large number of trading points throughout the continental U. For each point, Gas Daily publishes an absolute high and low price, a common high and low price and a midpoint price. When traders refer to the "Gas Daily index" price, they are generally referring to the midpoint price. The process of collecting natural gas flowing from numerous wells and bringing it together into pooling areas where it is received into transmission pipelines.
Gathering systems are small systems of mostly low-pressure pipe that connect the numerous wells dotting producing fields to the interstate transmission system. Gathering systems are typically state-regulated as they do not cross state boundaries.
An Internet-based electronic trading system operated by the Chicago Mercantile Exchange. A regional interstate natural gas pipeline system that transports natural gas from an interconnect with Tennessee in Massachusetts to markets in coastal New Hampshire and Maine.
Granite State is owned by Unitil. An indicator of space heating demand. The heating degree days for a single day equal 65 degrees Fahrenheit minus the average of the highest hourly temperature and the lowest hourly temperature for the day, if greater than or equal to zero. A major pipeline interconnect point located in Louisiana. The Henry Hub is also a highly liquid trading point, with numerous buyers and sellers of both physical natural gas and financial derivatives.
Contracts are traded on each of the remaining months in the current calendar year plus five additional calendar years. At the end of trading on the third-to-last business day of each month, the nearest prompt month contract expires and the next delivery month becomes the new prompt month. One heating oil futures contract represents 1, barrels 42, gallons of product.
In options trading parlance, a contract that could be exercised for a gain at current market prices. The opposite of "in the money" is "out of the money. A natural gas industry trade journal published each month by Platts. In each issue, IFGMR publishes the results of a phone survey of traders and other industry participants. The survey provides indicative prices for physical monthly baseload supply delivered to a large number of trading points throughout the continental U. An electronic trading exchange for energy products and precious metals derivatives.
Trades are financially settled between counterparties, not between counterparties and the exchange. This requires counterparties to independently establish and monitor creditworthiness with each other before trades can be conducted.
A regional interstate natural gas pipeline system that transports natural gas from a Canadian import point in Waddington, New York to interconnects and markets in southeastern New England and Long Island.
The final price at which the financial settlement of all open futures contracts for a particular commodity and delivery month occurs. The price determined by the NYMEX is actually an average of all trading activity in the last 30 minutes of trading. This is done to prevent an individual or a small group of traders from engaging in manipulation of the price of a futures contract in the waning moments of trading.
The ability of a natural gas pipeline to effectively "store" small quantities of gas on a short-term basis by increasing the operating pressure of the pipe. Most pipelines use line pack as a resource to help manage the load fluctuations on their systems, building up line pack during periods of decreased demand and drawing it down during periods of increased demand.
Natural gas that has been cooled and compressed into a liquid state in order to more efficiently transport it from producing regions to market. Most LNG is produced in oil-rich, equatorial countries with little use for natural gas for space heating, such as Algeria, Trinidad and Qatar. It is then transported by ship to import facilities where it is stored and ultimately vaporized and delivered into the pipeline system.
LNG is expensive to produce on a commodity basis but is valuable as a source of peaking gas since it can be delivered into constrained market areas without requiring large investments in pipeline capacity back to producing regions. The entity responsible for receiving natural gas or power from the wholesale transmission system and distributing it to end use customers.
LDCs are state-jurisdictional entities whereas most transmission providers are federal jurisdictional. In addition to local delivery of energy, the LDC is typically also responsible for providing metering and billing services.
M3 is a highly liquid trading point, with numerous buyers and sellers of both physical natural gas and financial derivatives. A regional interstate natural gas pipeline system that transports natural gas from a Canadian import point on the Maine-New Brunswick border to markets along the Maine and New Hampshire seacoasts and interconnects with Tennessee and Algonquin in eastern Massachusetts.
One MCF is one thousand cubic feet of natural gas at standard distribution pressure of Along the way, Millennium interconnects with other interstate pipelines as well as local production and storage facilities. Brokers will make an attempt to honor MOC orders, but in extremely volatile markets they may not be able to. Calculations that smooth the price action in a commodity or security in order to reveal underlying trends.
The 5 day simple moving average, for instance, is a series of values that equal the straight average of the preceding 5 daily settlement prices for each day. Contract Year means, with respect to the initial Contract Year, the period beginning on the Commercial Operation Date and ending at Each successive Contract Year shall coincide with the succeeding Fiscal Year, i.
Working level month or "WLM" means an exposure to one working level for hours. Two thousand working hours per year divided by 12 months per year is approximately equal to hours per month. Production Period means the period beginning with preproduction and ending upon completion of postproduction. Semi-Annual Period means each of: the period beginning on and including January 1 and ending on and including June 30; and the period beginning on and including July 1 and ending on and including December First Period means the twelve-month period ending on the Termination Date.
Weeks Pay' means the ordinary time rate of pay for the employee concerned:.
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