Natural Gas

Natural Gas

Natural Gas Brokerage Services

Good Energy offers natural gas brokerage services to commercial and industrial facility managers in deregulated natural gas supply markets throughout the United States.

Contract Basics

Natural gas is a highly volatile commodity and the price per therm for delivery next month may differ substantially from the price per therm for delivery in the following month. An energy contract price may be determined, in part, by calculating a customer’s needs in each of the next 12, 24 or 36 months, and then multiplying those volumes by the futures prices for the respective months as currently available on the NYMEX market. Because the price of natural gas for delivery in each future month will differ, the prices for 12, 24 and 36 month contract offers will also vary. Add hedging premiums, losses, ancillary costs, margin, and other price components, and it’s easy to see why contract prices may vary wildly from one supplier to the next. Additionally, the prices available today may no longer be available tomorrow, due to rapid price fluctuations over a very short period.

Good Energy’s Value

An array of product structures including fixed price, a host of index or variable rate offers and even “clean” gas offers are available in most markets nationally. Choosing the right product type is a very important element to the process of smart natural gas procurement. For example, it would have been a bad idea to enter into a fixed price long term natural gas supply contract in the days after Hurricane Katrina when natural gas prices peaked. It follows that the right product selection back then may not be the right product selection today, because market conditions have changed. The extreme volatility of natural gas contract prices make product type and term selection critical considerations to the process, and by soliciting contract offers for a chosen product type and term from a wide array of suppliers, and ensuring the price offers are made at the same moment, Good Energy maximizes the chance of pairing an energy user’s needs with the most attractive offer available given current market conditions. Contact your Good Energy representative today to learn how your business can benefit from a smarter way to buy energy.