related also:

Natural Gas Futures Trading

Natural Gas Commodities - Market

Contracts for natural gas futures contracts on NYMEX are binding agreements to accept delivery of the commodity in Louisiana, at the Henry Hub facility. Both natural gas futures and natural gas options are used by traders for management of risk, as well as the ‘spark spread’ – the price between electricity futures and natural gas futures.

U.S Natural Gas Supply and Demand The North American Gas crisis - the condition of declining countrywide supply combined with increasing demand in the United States – has led to proposals of LNG (liquefied natural gas). Which poses its own set of challenges in the form of creating new stations/terminals, in transportation distribution (beyond pipelines) and in the outlays of large sums of capital necessary for its realization. Some see the LNG alternative as possibly affecting the natural gas trading market, one way or another.

Options on natural gas futures were first introduced on October 2, 1992. Which for the first time allowed greater trading strategies either by itself or in conjunction with futures.