Storing up trouble
Utilities have become active hedgers against today’s high natural gas prices.In recent years, there has been a notable increase in both physical and financialhedging. Catherine Lacoursiere looks at whether storage is still a viable hedge
As price takers, they are having to be more creative to smooth out the effects of natural gas price volatility on their earnings. The typical defence against price spikes is injecting natural gas into storage for peak winter months – a natural hedge for utilities. About two thirds of natural gas local distribution companies (LDCs
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