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NATURAL GAS SUPPLY: UNDERSTANDING PRICE COMPONENTS AND GAS SUPPLY OPTIONS

Understanding the various components of a natural gas rate is the first thing we like to discuss with our new customers. Gas supply prices has two major components in most U.S. markets: natural gas, transport & capacity. End users have the option to float these components on the open market, fix all components, or do some combination of both. Most smaller commercial energy users (restaurants, hotels) typically look to fix these supply components into a fully-bundled fix rate for natural gas. Larger energy users (industrial) tend to float some, if not all, of these supply costs on the open market.

 

We have the market knowledge to guide you on your best options to achieve the lowest-cost natural gas with taking minimal risk. A typical negotiation for the purchase of natural gas supply typically follows the process outlined below.

THE STEPS TO PROCURING
LOW-COST NATURAL GAS:

  • Submit a recent natural gas bill copy and give us authorization to price your accounts.
  • We will download your historical natural gas consumption data from your utility company for analysis.
  • Together we will evaluate various natural gas supply products best fit to your consumption profile.
  • Together we will evaluate risk vs. reward for each structure, and decide on a structure.
  • We will put your supply out to bid among qualified natural gas suppliers.
  • We will negotiate contract terms with the low-cost supplier.
  • You will execute a supply agreement.
  • We will monitor and service the supply agreement.

See a Sample Energy Analysis Report

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