Table 7 Different price quotes for natural gas
Natural gas consumer sectors and price quotes | |
|---|---|
City gate price ** | The price paid by a natural gas utility when it receives natural gas from a transmission pipeline. "City Gate" is used because the transmission pipeline often connects to the distribution system that supplies a city. |
Commercial price ** | The price paid by nonmanufacturing businesses engaged in the sale of goods or services such as hotels, restaurants, stores and service enterprises. |
Electric power price ** | The price paid by electric utilities and other companies who burn the gas to produce electricity. |
Henry Hub price | Henry Hub is a pipeline terminal on the Louisiana Gulf Coast. It is the delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. The "Henry Hub price" is the amount that will be paid for gas at the hub on a specified date in the future. |
Industrial price ** | The price paid by manufacturing companies who use gas for heat, power, or chemical feedstock. Includes those engaged in mineral extraction, forestry, agriculture and construction. |
Futures price | A "futures price" is a quote for delivering a specified quantity of natural gas at a specified time and place in the future. Buyers who need a long-term supply at a known price will contract for gas with futures. |
Residential price ** | The price paid by homeowners who use the gas mainly for space and water heating. |
Wellhead price ** | The price paid at the mouth of a well for gas as it flows from the ground without any processing or transportation provided. |
FOOTNOTES | ** These are natural gas consumer sectors. Prices given for these sectors are averages. They are not fixed prices paid or charged across the sector. |