Natural Gas Prices

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Natural Gas Prices

• Whats that all about?

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Natural Gas Prices
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Natural Gas Prices
Transmission Pipeline
Producer
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Natural Gas Prices
Local Distribution Company
Transmission Pipeline
Producer
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Natural Gas Prices
Local Distribution Company
Transmission Pipeline
Storage
Producer
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Natural Gas Prices
Local Distribution Company
Storage
Transmission Pipeline
Storage
Producer
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Natural Gas Prices
Local Distribution Company
Storage
Transmission Pipeline
Storage
Producer
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Natural Gas Prices
Local Distribution Company
Storage
Transmission Pipeline
Storage
Producer
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Natural Gas Prices
Local Distribution Company
Storage
Transmission Pipeline
Storage
Producer
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Natural Gas Prices
Local Distribution Company
Storage
Transmission Pipeline
Storage
Producer
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Natural Gas PricesComponents

• Five Components of the Natural Gas System

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production
• Transmission

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production
• Transmission
• Distribution

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production
• Transmission
• Distribution
• Storage

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production
• Transmission
• Distribution
• Storage
• Ancillary Services

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Natural Gas PricesComponents

• Five Components of the Natural Gas System
• Production
• Transmission
• Distribution
• Storage
• Ancillary Services
• Metering/Billing
• Pressure Regulation
• Balancing
• Back-up Energy

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers
• Gas Transmission Pipelines

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers
• Gas Transmission Pipelines
• Local Distribution Companies (LDC)

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers
• Gas Transmission Pipelines
• Local Distribution Companies (LDC)
• Natural Gas Brokers

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers
• Gas Transmission Pipelines
• Local Distribution Companies (LDC)
• Natural Gas Brokers
• Natural Gas Marketers

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Natural Gas PricesPlayers

• Major Players in the Natural Gas System
• Customers
• Producers
• Gas Transmission Pipelines
• Local Distribution Companies (LDC)
• Natural Gas Brokers
• Natural Gas Marketers
• Speculators

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Natural Gas PricesRegulated v. Un-Regulated

• Regulated
• Gas Transmission Pipelines
• Local Distribution Companies

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Natural Gas PricesRegulated v. Un-Regulated

• Regulated
• Gas Transmission Pipelines
• Local Distribution Companies
• Un-Regulated
• Natural Gas Commodity
• Tradeable Transmission Rights
• Certain Ancillary Services

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)
• For gas at Trading Hubs (Henry Hub)

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)
• For gas at Trading Hubs (Henry Hub)
• For both Future and Spot Markets

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)
• For gas at Trading Hubs (Henry Hub)
• For both Future and Spot Markets
• Gas is traded at different delivery points
  (Basis Differential)

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)
• For gas at Trading Hubs (Henry Hub)
• For both Future and Spot Markets
• Gas is traded at different delivery points
  (Basis Differential)
• More than 90 of all trades do not go to delivery

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Natural Gas PricesMarkets

• Natural Gas is Traded
• In the form of Standard Contracts
• At a Commodity Exchange (NYMEX)
• For gas at Trading Hubs (Henry Hub)
• For both Future and Spot Markets
• Gas is traded at different delivery points
  (Basis Differential)
• More than 90 of all trades do not go to delivery
• Traders do not care about the absolute price of a
  contract, only the relative price

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Natural Gas PricesPrice Drivers

• Availability of Supply

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Natural Gas PricesPrice Drivers

• Availability of Supply
• Weather
• Summer
• Winter
• Hurricanes

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Natural Gas PricesPrice Drivers

• Availability of Supply
• Weather
• Summer
• Winter
• Hurricanes
• Alternative Fuel Prices

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Natural Gas PricesPrice Drivers

• Availability of Supply
• Weather
• Summer
• Winter
• Hurricanes
• Alternative Fuel Prices
• Storage Levels

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Natural Gas PricesPrice Drivers

• Availability of Supply
• Weather
• Summer
• Winter
• Hurricanes
• Alternative Fuel Prices
• Storage Levels
• New Consumptive Loads

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Natural Gas Markets
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Natural Gas Markets
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