What is Natural Gas? - Natural Gas is a mixture of the following gases; Methane, Propane, Butane, Ethane, Hydrogen and Oxygen. Natural Gas trades on several exchanges around the world as well as directly between counterparties or, OTC (Over The Counter). Most trading in gas takes place directly between counterparties i.e. OTC!
What is LNG? - LNG (liquid natural gas) is natural gas that has been cooled to about -162 degrees centigrade. This allows the gas to be transported by tanker. When cooled, natural gas takes up about 600 times less space than when in it's gaseous state!
Natural Gas Markets!
Natural Gas is usually priced at "gas hubs" which can be physical locations where gas is delivered or "virtual hubs" which are general areas designated in which gas may be delivered, rather that one physical location. The "NBP" or the National Balancing Point in the UK is an example of a virtual hub. "Henry Hub" in the U.S. is an example of a physical hub.