Factors Affecting Natural Gas Pricing
Pricing Options
Factors Affecting Natural Gas Pricing:
When you investigate pricing options for your natural gas, it is important to understand that the price you pay will depend upon many variables. These variables will include your individual energy usage patterns, the length of your contract, and the market price of natural gas at the time you enter into your natural gas supply agreement.
Natural gas is a commonly traded commodity bought and sold on public exchanges (such as the New York Mercantile Exchange), as well as on over-the-counter and electronic exchanges. It may also be purchased directly from the producer by large manufacturers and retail end users.
The laws of supply and demand will affect the market value of natural gas. Natural gas production rates, storage and inventory levels, industrial demand, temperature and climate patterns, transportation disruptions, availability and cost of alternative fuels, global politics, and general economic conditions all will impact the price at which natural gas is traded and sold.
In order to quote a price to
the consumer, it is necessary to collect information from
you and/or your utility about your historical usage patterns
and volumes. It
is then possible to determine how much and at what price natural gas must be
purchased to accommodate your needs. These natural
gas experts, Castle works with, will do their utmost to provide you with competitive
natural gas pricing. Please contact us so we can help you select
the right natural gas pricing product for your individual energy
needs.
Pricing Options
There are various pricing options in order to meet the needs of your type of business and history of natural gas consumption. The following are available for all firm and interruptible accounts:
Fixed
Price Contract:
The
price and volume for natural gas are fixed
for the Primary Term of the Sales Agreement and the customer
agrees to purchase the volume specified. During the Primary
Term, any gas usage that exceeds the contracted monthly volumes
will be priced at a monthly spot price. All natural gas
supplied following the Primary Term will be at a monthly variable
price.
Baseload
Price Contract:
The
price for a specified percentage of monthly forecasted usage
is fixed and delivered on an even daily basis. Any
additional monthly usage will be at a floating monthly price
based on prevailing market conditions.
All natural gas supplied following the Primary Term will be
at a monthly variable price.
Fixed
90 % / 110 % Tolerance Contract:
The
price of natural gas is based upon the monthly volumes specified. The unit price of natural gas for all monthly
quantities between 90 percent and 110 percent of the specified
monthly volumes is provided at the contract price per therm. There
is a unit price adjustment for any monthly under consumption
or excess consumption. All natural gas supplied following
the Primary Term will be at a monthly variable price.
Index
Price Contract:
This
is a variable priced contract. The price for any monthly
natural gas will be at a monthly variable price based on prevailing
market conditions.
Fixed
Basis Contract:
This
is a variable priced contract. The monthly price for natural
gas is 100% of settlement price of the New York Mercantile Exchange
(NYMEX) Natural Gas Futures - Henry Hub Contract for the last
trading day of each month plus a fixed transportation cost per
therm.
Contact
your Account Executive or call 914-381-6600 to discuss how
we may best serve your energy needs.
