The Lima Arizona Natural Gas Inventory Forward Sale Contract is a legally binding agreement between a natural gas buyer and a seller for the purchase or sale of natural gas inventory in Lima, Arizona. This agreement allows both parties to secure a future supply or disposal of natural gas at predetermined prices. This type of contract is commonly used in the energy industry to manage the risk associated with fluctuations in natural gas prices and ensure a stable supply of energy resources. Key terms and conditions included in the Lima Arizona Natural Gas Inventory Forward Sale Contract may encompass the quantity of natural gas to be exchanged, the delivery period, contract duration, pricing mechanism, and any additional provisions agreed upon by the parties involved. Different types of Lima Arizona Natural Gas Inventory Forward Sale Contracts may include: 1. Spot Contracts: These contracts involve the immediate purchase or sale of natural gas inventory. Spot contracts are typically executed at the current market price without any predetermined pricing or delivery terms. 2. Standard Forward Contracts: Standard forward contracts are the most common type and involve the purchase or sale of natural gas inventory at a predetermined price and delivery date in the future. These contracts provide both parties with price certainty and enable effective planning. 3. Swing Contracts: Swing contracts offer more flexibility in terms of delivery quantities. They allow the buyer to adjust the natural gas inventory to be delivered within specified minimum and maximum limits during the contract duration. 4. Index Contracts: Index contracts base their pricing on a specific natural gas price index, such as Henry Hub or NYMEX. The predetermined price is often tied to the index and adjusted periodically to reflect market fluctuations. Overall, the Lima Arizona Natural Gas Inventory Forward Sale Contract provides a framework for parties to manage their natural gas inventory requirements efficiently and effectively, ensuring a reliable supply of this energy resource while mitigating price risk.
Pima Arizona Natural Gas Inventory Forward Sale Contract
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FAQ
A forward contract allows you to buy or sell an asset on a specified future date. To account for one, start by crediting the Asset Obligation for the current value of the good on the liability side of the equation. Then, on the asset side, debit the Asset Receivable for the forward rate, or future value of the good.
In a forward purchase agreement, the parties enter into a contract to buy or sell an asset at an agreed upon price at a future date or upon the occurrence of a specified future event. These agreements have become a popular strategy as SPACs search for new options and deal terms to attract potential targets.
The most common way that traders take a position on natural gas is with a futures contract, such as the Henry Hub natural gas futures contract on the CME. With a futures contract, traders agree to the delivery of a certain amount of natural gas at a set date in the future for an agreed-upon price.
A futures contract for natural gas can be traded on the NYMEX, Intercontinental Exchange ( ICE ), or Multi Commodity Exchange (MCX). The NYMEX is the commodity benchmark in the United States while the ICE and MCX are based out of the U.K. and India, respectively.
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
The most common way that traders take a position on natural gas is with a futures contract, such as the Henry Hub natural gas futures contract on the CME. With a futures contract, traders agree to the delivery of a certain amount of natural gas at a set date in the future for an agreed-upon price.
A forward contract is a customizable derivative contract between two parties to buy or sell an asset at a specified price on a future date. Forward contracts can be tailored to a specific commodity, amount, and delivery date.
A forward contract, often shortened to just forward, is a contract agreement to buy or sell an asset at a specific price on a specified date in the future. Since the forward contract refers to the underlying asset that will be delivered on the specified date, it is considered a type of derivative.
It is an off-balance sheet transaction as it is just an agreement between two parties. As discussed in Stage 1, it has no impact on assets and liabilities (the very small transaction
What Are Natural Gas Futures? A natural gas future - like all commodities - is a contract obligating the buyer to purchase a specific quantity of natural gas at a future date and price. Delivery dates are set around the 15th day of the following month.