Natural Gas Solutions

Natural gas transportation is the term used by our industry to describe the process whereby customers are able to take competitive supply from a natural gas marketer that tailors a cost saving price structure to your company's specific consumption needs. 

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Many of companies are on default tariff rates that are designed to cover wide ranges of customers classes. Natural gas utilities in nearly every market in the United States remain margin neutral on the commodity cost of the natural gas that is transported over their pipeline system. Their profitability is relegated to the transportation rather than the actual cost of the gas itself. This removes incentive to buy gas strategically or specific to any one consumer.

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Transporting natural gas from a production area to where it is consumed involves a complex system of pipelines and storage facilities that bring many parties into the financial equation. Natural gas transportation starts within a gathering system and is then transported to consuming regions via interstate pipelines. Once gas has reached an area with sufficient consumer density, it is normally transmitted by a local distribution company (LDC). The systems in which gas is transported change continuously to meet the increasing consumer demands.

 

Understanding the layout and landscape of pipeline companies, what natural gas marketers are available in your area, and the tariff rules for the local distribution companies can make a significant difference in the amount youir company pays for natural gas.