The Natural Gas industry is undergoing significant transformation. Shale gas, pipeline, safety, increasing reliance on gas fixed generation and other factors combine to create an environment that’s different than recent past.
Natural gas companies need to address significant challenges such as aging infrastructure and on-going cost control pressures. In addition, transport costs, regulatory and severe weather all impact supply and pricing for natural gas.
Customers who have higher risk adversity can look at locking at rates for a specific term to avoid the fluctuations in the market. However, it’s critical to be aware of the contract terms and delivery charges and other stipulations and to look at the load balance to avoid any additional unforeseen costs. Larger consumers may look at option of receiving a fixed quantity of gas daily. We can assess your usage to determine which category best suits your needs.
There are two types of contracts:
- Load Following- you pay a fixed price for the term of the contract
- Fixed Quantity- for larger users where a specific agreed upon quantity of gas is supplied to your organization. Typically an agreement with the utility is drawn up.
There has been so much volatility in the last year due to weather and storage levels. Don’t be caught off guard. When it comes to a retail contract, it’s important to look back but more important to think forward. We’ll work to determine best fit model and best terms based on your requirements.