Natural Gas Solutions

Managing the energy needs of our clients for over 40 years

Natural Gas Solutions

Initial Evaluation

  • Evaluate account data 
  • Analyze LDC rate code
  • Check status of current supply agreements 
  • Evaluate current hedge and basis position
  • Assess energy consumption flexibility
  • Review Tax-exempt status

Natural Gas Procurement Process

  • Prepare and distribute RFP document to various suppliers
  • Evaluate RFP results
  • Provide detailed report and recommendation to client
  • Assist in negotiating 3rd party supply agreement

Secure Competitive Basis/Supply Contract

  • Basis is the cost to transport natural gas to LDC
  • Essential to negotiate basis rate before hedging supplies
  • Basis can vary from a negative to over 40% of your net gas supply costs
  • Supplier’s contractual obligations are critical
  • Your requirements are actively solicited to qualified marketers
  • Responses evaluated for price, reliability, and operational order flexibility
  • Recommendations provided with information on proposals’ economics and general strengths and weaknesses
  • Final supplier selected and proper contract language to maximize customer protection is secured

Futures & Options Market

  • Hedging programs based upon individual customer needs
  • Prices frequently fluctuate 10% to 15% in a day
  • Ability to evaluate future costs in real time
  • Stabilized & predictable costs

Hedging Program Progression

  • Understand  business needs
  • Evaluate market conditions and buying opportunities
  • Identify and assess risk tolerance
  • Formulate hedging goals and strategy
  • Work directly with management to determine an appropriate hedging plan for your company
  • Implement hedging schedule and define communication protocol
  • Monitor market conditions & trends for extended buying opportunities

    Natural Gas Invoice Analysis and Reconciliation

    • Analyze and reconcile all utility and marketer bills for accuracy, errors, and omissions

     

    Pooling of Resources Creates Economy of Scale

    • Individual Pooling of Company Resources
    • Take advantage of multiple accounts and pool individual site locations to maximize opportunity for basis and hedging
    • Customer Choice Pool Groups
    • Combine smaller natural gas loads to create an economy of scale sufficient to secure better transportation prices and hedging options.

    Gas Utility Pipeline Bypass Strategies

    • Evaluate opportunities
    • Negotiate utility contracts
    • Implement recommended changes