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Natural Gas futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of natural gas (eg. 10000 mmbtus) at a predetermined price on a future delivery date.
commodity info Barchart SymbolNGContractNatural GasExchangeNYMEXTick Size0.001 per MMBtu ($10.00 per contract)Margin/Maintenance$6,050/5,5008 more rows
A gas sale agreement (GSA) is the key agreement documenting the sale and purchase of a quantity of natural gas. This standard document GSA provides for one seller and one buyer and is drafted from a neutral point of view.
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.
Overview of NAESB Base Contract The current version of the Base Contract is the 2006 version adopted by NAESB on September 5, 2006. The Base Contract has become the most commonly used contract for the PHYSICAL purchase and sale of natural gas, and can be used for both long term and short term purchases.
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How is natural gas sold? Natural gas is mostly sold via futures contracts on the CME exchange. Large speculators and extraction companies use futures contracts to speculate on future prices and hedge their exposure, respectively. However, futures contracts also allow you to take delivery of natural gas.
Natural gas futures contract specifications Exchange, Product Name, Product CodeNew York Mercantile Exchange (NYMEX), Henry Hub Natural Gas Futures, NGContract Size10,000 mmBtuMinimum Tick Size and Value0.001, worth $10.00 per contract.2 more rows
Natural Gas Futures Contracts MonthLastOpenCash2.733s2.733Oct 232.6132.732Nov 232.8462.925Dec 233.2693.32022 more rows

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