Natural Gas Price

Natural Gas Price

Natural gas is a hydrocarbon gas mixture consisting primarily of methane, and also contains varying amounts of other higher alkanes. Sometimes it usually includes lesser percentage of carbon dioxide, nitrogen, and/or hydrogen sulfide. Natural gas is a nonrenewable resource, and is found in deep underground rock formations or associated with other hydrocarbon reservoirs in coal beds and as methane clathrates. Natural gas is often informally referred to simply as "gas". It is an energy source often used for cooking, heating and electricity generation. It is also used as fuel for vehicles and as a chemical feedstock in the manufacture of plastics and other commercially important organic chemicals.

The price of Natural gas:

Natural gas prices are mainly driven by supply and demand fundamentals, and it may be also affected by the price of crude oil or petroleum products, especially in continental Europe. The prices of natural gas in the United States had historically followed oil prices, however, in recent years have decoupled from oil and are now trending somewhat with coal prices. It is noted that the prices of natural gas delivered to consumers are $ per Mcf of pipeline-quality gas which is equal to $ per MMBtu multiplied by 1.025.

The measurement unit of natural gas: Million Btu

The Million Btu is a unit for natural gas which was defined as one thousand BTU. The abbreviation of Million Btu (M Btu or m Btu) is easily confused with the SI mega- (M) prefix which denotes multiplication by a factor of one million (×106), or or with the SI milli- (m) prefix, which denotes division by a factor of one thousand (×10−3). Therefore, in order to avoid confusion, it is commonly using the notation MMBtu or mmBtu to represent one million BTU.

The commonly units conversion for natural gas:
1 MMBtu (1 million BTU) = 1.054615 GJ
1000 ft3 of natural gas yields ≈ 1 MMBTU ≈ 1 GJ
1 ft3 of natural gas yields ≈ 1000 BTU
1000 m3 ≈ 36.906 MMBTU
1 MMBTU ≈ 27.096 m3