Natural Gas

Natural Gas is a combustible mixture of gaseous hydrocarbons that accumulates in porous sedimentary rocks, esp. those yielding petroleum, consisting usually of over 80 percent methane together with minor amounts of ethane, propane, butane, nitrogen, and, sometimes, helium: used as a fuel and to make carbon black, acetylene, and synthesis gas.

Natural Gas Prices

Natural gas prices, as with other commodity prices, are driven by supply and demand fundamentals.

The demand for Natural Gas is mainly driven by the following factors:

• Weather
• Demographics
• Economic Growth
• Fuel Competition
• Storage
• Exports

Weather

Natural gas demand usually peaks during the colder months of the year (November-March) and winds down during the warmer months. During the warmest summer months, the demand increases due to electricity generated by gas fired power plants. Any adverse weather conditions will increase the demand for natural gas. The colder the weather is during the winter, the more pronounced the winter peak will. On the other hand, a warmer winter usually results in a less noticeable winter peak. The opposite applies for the summer. If the summer season is extremely hot, it can result in greater cooling demands, which in turn may result in increased summer demand for natural gas.
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