Natural gas has been a critical component of the North American energy economy for decades, but recent fundamental shifts on both the supply side (production) and the demand side (electricity generation and exports) have brought natural gas back to the front of our domestic energy discussion. On the supply side, technology-fueled enhancements focused on drilling and extraction have driven natural gas production to a 50% increase from 2008 to 2018. The sustained lower price has spurred significant demand growth in the form of new-build natural gas fueled power and industrial plants as well as exports. The changing dynamics of natural gas supply and demand have created new opportunities for risk management.
Nodal Exchange’s natural gas products can be used to hedge price risk in the natural gas markets. In addition, our natural gas contracts provide portfolio margining benefits with participants’ Nodal Exchange power portfolios resulting in greater capital efficiency.
Nodal Exchange offers cash-settled monthly futures, spreads, strips and cals for Henry Hub Last Day and Penultimate. In addition, monthly options are available for Penultimate futures. Futures and options are offered in both a 2,500 MMBtu lot size and a 10,000 MMBtu lot size.