US Physical Natural Gas
Molecule's approach for managing physical natural gas in the US is based on our large library of standardized Products.
Location Modeling
We use a standard set of base products, available at each receipt and delivery point. These apply to purely bilateral trades, as well as exchange-OTC physical hybrids (such as trades entered on ICE NGX).
Each natural gas location has products for:
- Inside FERC
- Fixed Price Daily
- Fixed Price Monthly
- Fixed Price Spot
- Gas Daily Spot
- Gas Daily Monthly
- Basis LD1
Deal Modeling
Typically, monthly gas deals are entered in lots (for exchange hybrids) or mmBTU/day. For the delivery month, Molecule's Cascading feature generates daily flow volumes that can then be actualized.
Pricing & Settlement
Any Molecule bilateral product (M.XXXX) supports formula pricing. For physical US gas products, Molecule's standard configuration applies best available pricing to monthly products where appropriate. The best-available feature allows the system to price a deal against an estimate during its lifetime before settling against the relevant benchmark.
Forward Marks
Valuations can be calculated using any forward curve you provide, posted to the relevant trade's product. This can be a fully-resolved price or, if you wish, a curve build set up by our Customer Success team or developed by your team.
Exposures
For customers using Molecule's Exposures feature, curve building also allows the system to contemplate volumetric underlying exposures (e.g., NYMEX + Basis).
