Natural Gas

Natural gas has become the fuel of choice as the United States transitions to cleaner fuel sources in service to a cleaner environment. The largest uses of natural gas are generating electric power and heating; natural gas is replacing coal.

An important use of natural gas has developed in overseas markets. Growth in LNG exports has caused EIA to raise its forecast natural gas price for 2021 and 2022 reflecting growth in emerging economies in Asia.

Natural gas futures are physically delivered. There are many other natural gas contracts that are settled financially. The use of the correct natural gas contract can simplify the risk-offset provided by hedging. Natural gas has contracts of all sizes allowing a more precise hedging structure.

POWERHOUSE can help with hedging strategies that identify and use the appropriate contract for your business needs.