Contracts for the new natural gas business

Journal Article · Wed Jan 01 04:00:00 EST 1992 · Energy Law Journal; (United States)

OSTI ID:6683904

Haedicke, M E

Two major developments in the natural gas industry are causing fundamental changes in natural gas contracts. The first development, financial markets for natural gas, began only recently. On April 3, 1990, the New York Mercantile Exchange (NYMEX) began trading natural gas futures for a twelve month forward period. On the opening day, 925 contracts were traded. Recently, 18,344 contracts were traded in a single day, and gas 4 futures on NYMEX are now traded for an eighteen month forward period. At the same time, the market for off-exchange products, such as natural gas swaps and trade options, has expanded considerably. Shortly, it will be hard to imagine life in the natural gas business without the emerging financial markets for natural gas, if that time has not already occurred. The second major development, deregulation of the gas industry, began with the passage of the Natural Gas Policy Act of 1978. Each of the two developments provides a catalyst for fundamental changes in natural gas contracts. This article explores the impact of these two developments on long-term fixed-price physical gas contracts and the future direction of long-term fixed-price gas contracts.

• OSTI ID: 6683904
• Journal Information: Energy Law Journal; (United States), Journal Name: Energy Law Journal; (United States) Vol. 13:2; ISSN 0270-9163; ISSN ELJOEA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003 -- Energy Planning & Policy-- Natural Gas
CONTRACTS
DEREGULATION
ECONOMIC IMPACT
INDUSTRY
LAWS
LEGAL ASPECTS
LEGISLATION
NATIONAL ORGANIZATIONS
NATURAL GAS INDUSTRY
US DOE
US FERC
US NATIONAL ENERGY ACT
US NATURAL GAS POLICY ACT
US ORGANIZATIONS