Natural gas is an important source of energy across the globe and - although a reasonably unassuming colorless and odorless gas in its pure form - is vital to many societies. This combustible combination of hydrocarbon gases is a unique member of the energy sector and our contract specifications refer to the NYMEX futures contract.
10,000 million British thermal units (mmBtu)
U.S. dollars and cents per mmBtu.; minimum tick size $0.001 (0.1¢) per mmBtu ($10.00 per contract).
All months
Open outcry trading is conducted from 9:00 AM until 2:30 PM. Electronic trading is conducted from 6:00 PM until 5:15 PM via the CME Globex© trading platform, Sunday through Friday. There is a 45-minute break each day between 5:15PM (current trade date) and 6:00 PM (next trade date).
$3.00 per mmBtu ($30,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $3.00 per mmBtu in either direction. If another halt were triggered, the market would continue to be expanded by $3.00 per mmBtu in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.
Natural gas as a fossil fuel can be found in fields and coal beds across the globe. It can also be produced by chemically treating coal or from the anaerobic decay of organic materials - biogas - from swamps, marshes, landfills, and sewer. The following map shows global "proved reserves", those which technology suggests are reasonably recoverable and can be substantiated:
Natural gas use is not confined to modern origins - and from the flame of the Oracle of Delphi to bamboo pipelines built in ancient China, natural gas has proved a source of creative inspiration as well as valuable energy. Britain and the United States used natural gas for lights through the late eighteenth century and the first natural gas-specific well was dug in the early nineteenth century.
Unrefined natural gas is primarily composed of methane - up to 90 percent in some cases - but can also contain ethane, propane, butane, carbon dioxide, oxygen or nitrogen. Nearly pure methane is considered "dry" natural gas while the presence of hydrocarbons, as the name implies, means it is "wet". In processing, mercaptan is added to natural gas to give it the sulfur-like odor for safety in leak detection. Gas is collected in storage tanks and added to pipelines when required.
Natural gas can also be chilled and stored as a liquid for transport and export. This Liquid Natural Gas (LNG) is turned back into gas and added to pipelines at destination. The following chart displays the three largest natural gas producers in terms of gross production:
The top five exporters are illustrated as follows:
British Thermal Unit (BTU) - the amount of energy it takes to increase the temperature of a pint of water by one degree Farenheit.
Liquid Natural Gas (LNG) - natural gas that is converted to liquid for easier transport. It is acheived by cooling the gas to negative 260 degrees Farenheit.
Henry Hub - a site where several interstate and intrastate pipelines intersect in Erath, Louisiana.
Natural gas can be used for gas turbines and steam turbines in electricity generation. Supplied to homes, it is used in appliances and central heating. Compressed natural gas may also be used for automobile fuel. The overall usage distribution may be illustrated as follows: