Definitions, Sources and Explanatory Notes

 Category:   Natural Gas Prices
 Topic:   Futures Prices


Key Terms Definition
Contract 1 A futures contract specifying the earliest delivery date. Natural gas contracts expire three business days prior to the first calendar day of the delivery month. Thus, the delivery month for Contract 1 is the calendar month following the trade date.
Contract 2-4 Represent the successive delivery months following Contract 1.
Futures Price The price quoted for delivering a specified quantity of a commodity at a specified time and place in the future.
Natural Gas A gaseous mixture of hydrocarbon compounds, the primary one being methane.
NGL Composite Price The natural gas liquids (NGL) composite price is derived from daily Bloomberg spot price data for natural gas liquids at Mont Belvieu, Texas, weighted by gas processing plant production volumes of each product as reported on Form EIA-816, "Monthly Natural Gas Liquids Report."
Spot Price The price for a one-time open market transaction for immediate delivery of a specific quantity of product at a specific location where the commodity is purchased "on the spot" at current market rates.

For definitions of related energy terms, refer to the EIA Energy Glossary.


Spot Price: Refinitiv, an LSEG business.
NGL Composite Price: Bloomberg.
Futures Prices: New York Mercantile Exchange (NYMEX).

  Explanatory Notes

  • Prices are based on delivery at the Henry Hub in Louisiana. Official daily closing prices at 2:30 p.m. from the trading floor of the New York Mercantile Exchange (NYMEX) for a specific delivery month.