The North Carolina Natural Gas Inventory Forward Sale Contract is a financial agreement that allows participants to buy or sell natural gas inventory at predetermined prices for future delivery in North Carolina. This contract serves as a forward hedge against potential price fluctuations in the natural gas market, providing stability and security for both buyers and sellers. Within the realm of North Carolina Natural Gas Inventory Forward Sale Contracts, there are different types available to cater to the specific needs of participants. 1. Fixed Price Forward Sale Contract: This type of contract guarantees a fixed price for the sale or purchase of natural gas inventory at a specified future date. It offers price certainty, protecting parties from any subsequent price changes that could affect their inventory's value. 2. Index-based Forward Sale Contract: In this variant, the contract's price is tied to an industry-recognized natural gas pricing index, such as the Henry Hub spot price. The actual price on the delivery date is determined by referencing the chosen index. This type of contract allows participants to benefit from market price movements while still having a level of price predictability. 3. Swing Contract: The swing contract provides flexibility for natural gas buyers or sellers by allowing adjustments in the contracted volume within predetermined limits. Participants can take advantage of changing market conditions by adjusting the delivery volume accordingly, ensuring efficient utilization of their inventory. 4. Basis Forward Sale Contract: This contract type hedges against changes in the difference between the North Carolina natural gas price index and another pricing index, commonly the Henry Hub index. By locking the basis differential, participants can minimize exposure to regional price disparities and secure a more stable pricing structure. The North Carolina Natural Gas Inventory Forward Sale Contract offers market participants an opportunity to manage their risk, maintain price stability, and ensure a reliable supply of natural gas inventory in the region. It is an essential financial instrument for businesses operating in the natural gas industry, utilities, and other organizations relying on natural gas for their energy needs.
North Carolina Natural Gas Inventory Forward Sale Contract
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712 eliminates the cap on all releases of one year or less, so that a release for 31 days or less can now exceed the maximum pipeline tariff rate, it is unclear why the FERC retains in this context the reference to release to the same replacement shipper ?at less than the maximum tariff rate.? It appears that FERC's ...
Firm Gas means Natural Gas purchased by Owner on behalf of the Project (with the consent of Millennium) under contracts where the supply and delivery of Natural Gas is on an uninterruptible basis.
Under interruptible contracts, customers are not required to pay any fixed minimum amounts, but are instead billed based on actual volume of service provided for any given period. Payment for services under these contracts are typically due the month after the services have been performed.
Under these contracts, the flow of natural gas to a power plant may be stopped or curtailed if firm contract holders use the available capacity or if other interruptible customers outbid the power plant. These contracts are generally set up for short periods, often for next-day delivery.
Firm Transportation means the provision of natural gas pipeline transportation that is not subject to a prior claim by another pipeline customer or another class of transportation service and cannot be interrupted except in a situation of force majeure.
?interruptible capacity?: an extreme form non-firm capacity whose availability is not guaranteed in any way by the natural gas undertaking. ?available firm capacity?: the part of the technical capacity that is not allocated and is still available to the system users at that moment.
Firm transportation service is typically sold on the basis of a ?fixed demand or reservation charge? (i.e., you pay for the service whether you use it or not), whereas interruptible service is typically sold on a ?commodity basis? (i.e., you pay only if you use it).
Firm contracts and interruptible contracts are two broad types of contracts for purchasing natural gas, although the legal obligations for delivering natural gas between a fuel supplier and a natural gas-fired power plant can vary, depending on their specific agreements.