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Natural gas pricing for both the physically traded and financially traded contracts is an interesting beast. Both the buyers and sellers of natural gas for both physical and financial trades are "encouraged" (but not required) by the Federal Energy Regulatory Commission (FERC) to report their trades (how much was offered, how much asked, final deal amount) to Price Reporting Agencies (PRAs), including the venerable Natural Gas Intelligence (NGI), S&P Global Commodity Insights (formerly Platts), OPIS, Argus, ICIS and others. In recent years the number of self-reported trades has decreased, calling into question the accuracy of trade information and the indices and averages upon which billions of dollars of deals are based. Last week FERC finalized a new policy aimed at promoting physical natural gas price indexes and improving transparency, ultimately encouraging more self-reporting.
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