Ohio 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. The Ohio Natural Gas Inventory Forward Sale Contract is a financial agreement that allows parties to buy or sell natural gas inventory in Ohio at a predetermined price for future delivery. It is a popular tool used by businesses in the energy industry to manage risk and ensure stable supply. These contracts provide participants with the opportunity to hedge against potential price volatility in the natural gas market. By locking in a price in advance, buyers and sellers can protect themselves from unexpected price fluctuations, ensuring a more predictable and secure future for their natural gas supply chain. The Ohio Natural Gas Inventory Forward Sale Contract is especially valuable for utilities, power generators, and large industrial consumers who rely heavily on natural gas for their operations. It allows them to secure their gas supply at a fixed price, mitigating the risks associated with market uncertainties. There are various types of Ohio Natural Gas Inventory Forward Sale Contracts available to cater to different needs and preferences. Some commonly known types include: 1. Fixed-Price Forward Contracts: These contracts allow participants to lock in a specific price for a predetermined volume of natural gas inventory, ensuring a stable cost structure and protecting against future price increases. 2. Index-Based Forward Contracts: These contracts involve pricing based on an index, such as the Henry Hub spot price or the NYMEX natural gas futures price. This type of contract allows participants to tie the price of their natural gas inventory to a widely recognized market benchmark. 3. Swing Contracts: Swing contracts provide the flexibility to vary the quantity of natural gas inventory delivered within a specified range. This type of contract is useful for managing demand fluctuations, allowing participants to adjust delivery quantities based on their specific requirements. 4. Time-Spread Contracts: These contracts involve pricing based on different delivery periods. Participants can choose to buy or sell natural gas inventory at different points in the future, capitalizing on changes in seasonal demand or market conditions. These different types of Ohio Natural Gas Inventory Forward Sale Contracts provide businesses with a wide range of options to tailor their risk management strategies and ensure a stable and cost-effective supply of natural gas. It is essential for businesses to carefully evaluate their needs and assess various contract types to choose the most suitable option for their specific requirements.

The Ohio Natural Gas Inventory Forward Sale Contract is a financial agreement that allows parties to buy or sell natural gas inventory in Ohio at a predetermined price for future delivery. It is a popular tool used by businesses in the energy industry to manage risk and ensure stable supply. These contracts provide participants with the opportunity to hedge against potential price volatility in the natural gas market. By locking in a price in advance, buyers and sellers can protect themselves from unexpected price fluctuations, ensuring a more predictable and secure future for their natural gas supply chain. The Ohio Natural Gas Inventory Forward Sale Contract is especially valuable for utilities, power generators, and large industrial consumers who rely heavily on natural gas for their operations. It allows them to secure their gas supply at a fixed price, mitigating the risks associated with market uncertainties. There are various types of Ohio Natural Gas Inventory Forward Sale Contracts available to cater to different needs and preferences. Some commonly known types include: 1. Fixed-Price Forward Contracts: These contracts allow participants to lock in a specific price for a predetermined volume of natural gas inventory, ensuring a stable cost structure and protecting against future price increases. 2. Index-Based Forward Contracts: These contracts involve pricing based on an index, such as the Henry Hub spot price or the NYMEX natural gas futures price. This type of contract allows participants to tie the price of their natural gas inventory to a widely recognized market benchmark. 3. Swing Contracts: Swing contracts provide the flexibility to vary the quantity of natural gas inventory delivered within a specified range. This type of contract is useful for managing demand fluctuations, allowing participants to adjust delivery quantities based on their specific requirements. 4. Time-Spread Contracts: These contracts involve pricing based on different delivery periods. Participants can choose to buy or sell natural gas inventory at different points in the future, capitalizing on changes in seasonal demand or market conditions. These different types of Ohio Natural Gas Inventory Forward Sale Contracts provide businesses with a wide range of options to tailor their risk management strategies and ensure a stable and cost-effective supply of natural gas. It is essential for businesses to carefully evaluate their needs and assess various contract types to choose the most suitable option for their specific requirements.