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Major Uses of Natural Gas

Natural gas is a fossil fuel formed over thousands of years from decomposed plants and animals exposed to heat and pressure underground. It primarily consists of methane but also contains other gases. Global natural gas reserves are estimated at over 7 trillion cubic feet, with the Middle East holding the largest share. Natural gas is widely used to generate electricity and as a cooking and heating fuel. It is traded on commodity exchanges in the US and India, with current spot prices around $2.50 per MMBtu.

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59 views

Major Uses of Natural Gas

Natural gas is a fossil fuel formed over thousands of years from decomposed plants and animals exposed to heat and pressure underground. It primarily consists of methane but also contains other gases. Global natural gas reserves are estimated at over 7 trillion cubic feet, with the Middle East holding the largest share. Natural gas is widely used to generate electricity and as a cooking and heating fuel. It is traded on commodity exchanges in the US and India, with current spot prices around $2.50 per MMBtu.

Uploaded by

Abhishek Suryaraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Natural Gas

Natural gas is a fossil fuel formed when layers of buried plants, gases, and animals are exposed
to intense heat and pressure over thousands of years. The energy that the plants originally
obtained from the sun is stored in the form of chemical bonds in natural gas. Natural gas is a
hydrocarbon gas mixture consisting primarily of methane, but commonly includes varying
amounts of other higher alkanes and even a lesser percentage of carbon dioxide, nitrogen, and
hydrogen sulfide.
The worlds natural gas reserves estimates around 7,3!." trillion cubic feet. The #iddle $ast
countries holds 3%.&' of the worlds reserves, ().&' is located in the former *oviet +nion, with
only "' held in the ,$-. countries.
Major uses of Natural Gas
Natural gas is a main source of electricity generation through the use of cogeneration, gas
turbines and steam turbines. +sing hydrocarbon, combined cycle power generation through
natural gas is the safest and cleanest way to generate power. /ts compressed form -N0 is the
main domestic cooking and heating fuel. /t is also used in the production of ammonia fertili1ers
for agricultural use. Now a days some of the aircraft specially designed by 2ussians use natural
gas as their fuel.
/n #-3 4#ulti -ommodity $xchange5 Natural 0as is 6uoted in dollars and cents per mm7tu
and are traded in lot si1es of )!!!! mm7tu 4#illion #etric 7ritish Thermal +nits5.
News about Natural Gas
Natural gas was one of the best performers in last week with the commodity tracking mostly
better weekly inventory report from the +*. 7y the end of trade, N0 for active #ay expiry
contract was higher by (.& percent to +*. &.&7! ##7T+ whereas in the /ndian markets we
saw local prices adding (.8 percent to 2s (%!.)! per ##7T+. 9e also recommended a ratio
strategy by buying crude and selling N0 though as both commodities inched higher locally, and
N0 outperformed -rude: traders who initiated the position might be sitting in moderate loss. 9e
recommend exiting any holding positions in 2atio today.
Current performance of Natural Gas in the Commodity Market
Natural gas is currently being traded with a spot price of (%!.38 4)(
th
;pr (!)&5.
The current *pot prices in #-3 for Natural 0as futures are<
(%3.&!= mm7tu for (8
th
;pr (!)&
(%8.8!=mm7tu for (7
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#ay (!)&
(%%.3!=mm7tu for (8
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References
http://www.mcxindia.com/SitePages/ContractSpecification.aspx?ProductCode=NATURA!"AS
http://www.cmegroup.com/trading/energ#/natura$%gas/natura$%gas.htm$
http://www.mcxindia.com/SitePages/Rea$Time&ata.aspx
http://www.commodit#on$ine.com/commodit#%mar'et/commodit#%prices/natura$()*gas
http://www.in+esting.com/news/commodities%news/natura$%gas%dips%on%forecasts%for%mi$d%spring%
weather%),,-./

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