Rhode Island Natural Gas Inventory Forward Sale Contract

State:
Multi-State
Control #:
US-EG-9211
Format:
Word; 
Rich Text
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Description

Natural Gas Inventory Forward Sale Contract between EEX Operating, LLC, E&P Company, LP and Bob West Treasure, LLC regarding the sale and purchase of natural gas dated December 17, 1999. 31 pages.
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FAQ

Bid Week. The five business days immediately preceding the first of the month. During bid week, all financial positions must be closed out. Financial positions serving as hedges for physical natural gas transactions must be converted into physical supplies.

Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States.

Day trading can be a viable way to speculate on the price of natural gas due to the high volatility in the market. Traders who deploy a day trading strategy seek to make small profits on a lot of trades throughout the day, meaning they are constantly scanning the markets throughout a single trading session.

The Natural Gas futures contract trades in 0.001 point increments. As each contract is equal to 10,000 MMBtu, a 0.001 point move equates to $10.00 (0.001 x 10,000). If Natural Gas prices were to move up or down 0.050 points, that would equate to $500.00 +/-.

Natural gas prices are a function of market supply and demand. Increases in natural gas supply generally result in lower natural gas prices, and decreases in supply tend to lead to higher prices. Increases in demand generally lead to higher prices, and decreases in demand tend to lead to lower prices.

GSA: Gas Sales Agreement. SPA: Sales & Purchase Agreement. MSA: Master Sale Agreement.

1 million tonnes per year (mtpa) (LNG) = 48.7 Bcf/year* (gas) = 1.379 bcm/year (gas)

You can invest in natural gas by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements.

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Rhode Island Natural Gas Inventory Forward Sale Contract