Louisiana Natural Gas Inventory Forward Sale Contract

• Category: Corporations - Public - Sales
• State: Multi-State
• Control #: US-EG-9211
• Format: Word; Rich Text

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. Louisiana Natural Gas Inventory Forward Sale Contract is a financial agreement that allows participants to trade and lock in future prices for Louisiana natural gas inventory. This contract provides a mechanism for buyers and sellers to manage their exposure to price volatility in the natural gas market. The Louisiana natural gas market is a significant player in the United States, with a vast infrastructure and plentiful reserves. As a result, the creation of forward sale contracts provides market participants the opportunity to mitigate risk and plan for future gas needs in a transparent and efficient manner. The Louisiana Natural Gas Inventory Forward Sale Contract typically involves specifying the quantity of the natural gas to be bought or sold, the delivery period, and the agreed-upon price. These contracts are settled on a standardized basis and often traded on organized exchanges or through over-the-counter (OTC) deals. Several types of Louisiana Natural Gas Inventory Forward Sale Contracts exist, depending on the delivery period and other specificities. Some examples include: 1. Monthly Contracts: These contracts are settled on a monthly basis, allowing participants to lock in prices for a specific month in the future. This type of contract is ideal for buyers or sellers who wish to address short-term gas requirements or price fluctuations. 2. Seasonal Contracts: Seasonal contracts focus on locking in prices for specific seasons, typically during high-demand periods such as winter or summer. They enable market participants to plan for seasonal variations and ensure a stable supply of natural gas throughout peak times. 3. Calendar Year Contracts: Calendar year contracts cover an entire year's worth of natural gas demand, providing an opportunity to set prices and secure supplies for an extended period. This type of contract is advantageous for participants seeking long-term price stability and supply planning. 4. Basis Contracts: Basis contracts are structured around the differential between a specific natural gas market hub in Louisiana and the benchmark market index, such as the Henry Hub. These contracts provide a means to hedge against regional price differentials, allowing participants to manage basis risk. It is important to note that the specific terms and conditions of Louisiana Natural Gas Inventory Forward Sale Contracts may vary between market participants and exchanges. Traders, producers, utilities, and other market participants employ these contracts to manage their exposure to price fluctuations and maintain a secure supply of natural gas from Louisiana's robust inventory.

Louisiana Natural Gas Inventory Forward Sale Contract is a financial agreement that allows participants to trade and lock in future prices for Louisiana natural gas inventory. This contract provides a mechanism for buyers and sellers to manage their exposure to price volatility in the natural gas market. The Louisiana natural gas market is a significant player in the United States, with a vast infrastructure and plentiful reserves. As a result, the creation of forward sale contracts provides market participants the opportunity to mitigate risk and plan for future gas needs in a transparent and efficient manner. The Louisiana Natural Gas Inventory Forward Sale Contract typically involves specifying the quantity of the natural gas to be bought or sold, the delivery period, and the agreed-upon price. These contracts are settled on a standardized basis and often traded on organized exchanges or through over-the-counter (OTC) deals. Several types of Louisiana Natural Gas Inventory Forward Sale Contracts exist, depending on the delivery period and other specificities. Some examples include: 1. Monthly Contracts: These contracts are settled on a monthly basis, allowing participants to lock in prices for a specific month in the future. This type of contract is ideal for buyers or sellers who wish to address short-term gas requirements or price fluctuations. 2. Seasonal Contracts: Seasonal contracts focus on locking in prices for specific seasons, typically during high-demand periods such as winter or summer. They enable market participants to plan for seasonal variations and ensure a stable supply of natural gas throughout peak times. 3. Calendar Year Contracts: Calendar year contracts cover an entire year's worth of natural gas demand, providing an opportunity to set prices and secure supplies for an extended period. This type of contract is advantageous for participants seeking long-term price stability and supply planning. 4. Basis Contracts: Basis contracts are structured around the differential between a specific natural gas market hub in Louisiana and the benchmark market index, such as the Henry Hub. These contracts provide a means to hedge against regional price differentials, allowing participants to manage basis risk. It is important to note that the specific terms and conditions of Louisiana Natural Gas Inventory Forward Sale Contracts may vary between market participants and exchanges. Traders, producers, utilities, and other market participants employ these contracts to manage their exposure to price fluctuations and maintain a secure supply of natural gas from Louisiana's robust inventory.