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Procurement Market Intelligence Report

Natural Gas in Canada
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Natural Gas in Canada?

What is the average price of Natural Gas in Canada?

This procurement report includes pricing information to help you purchase Natural Gas in Canada. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Natural Gas in Canada been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Natural Gas in Canada yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Natural Gas in Canada?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Natural Gas in Canada with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Evaluate major factors to mitigate risk

How risky is the Natural Gas supply chain in Canada?

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HIGH

MEDIUM

LOW

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Supply Chain

  • Where do you source your primary raw materials?
  • Does any of your supply originate outside Canada?
  • Have you ever experienced supply chain disruptions resulting in insufficient supplies of natural gas products?
  • How often do you reevaluate list prices in relation to fluctuations in input costs?
  • What kind of price fluctuation caps do you have in place in case of input price shocks?
  • What is your current inventory volume of natural gas? How is your inventory level projected to change during the next three years?

Regulation

  • How do you keep up-to-date on natural gas regulations? What percentage of revenue is spent on compliance? Have you ever been found noncompliant against any Canadian regulations?
  • Will compliance with regulations cause problems regarding my ability to receive my products on time?
  • Do your technicians explain the potential risks associated with using the natural gas? Will you provide a copy of the labels if requested?
  • How will you adjust if any upstream vendors in the supply chain have trouble producing output due to more stringent requirements by regulators?

Energy Consumption

  • How has volatility in electric power prices affected your profit margins in previous years?
  • When electric power prices are high, in what areas do you cut costs to protect profit margins?
  • Have you implemented an energy efficiency plan to save on energy costs?
  • Have you upgraded your production machinery in recent years to save on energy costs?

Sourcing across North America?

Combine Canada Spotlight Reports with our US Market Intelligence to bolster your North American strategy

Key elements for every RFP

What should my Natural Gas in Canada RFP include?

Project Budget

  • Buyers should include the index price per gigajoule and a fixed price gigajoule.
  • Buyers should include the budgeting fees for transporting the natural gas to their location.
  • Buyers should state how often pricing can be adjusted in line with their chosen index.
  • Buyers should provide the details for converting to a fixed price.

Selection Criteria

  • Buyers should evaluate suppliers on whether they price competitively.
  • Buyers should give priority to suppliers that are flexible with contract terms and conditions.
  • Buyers should give priority to suppliers that have consistently demonstrated they are able to deliver product without any disruptions.

Project Schedule

  • Buyers should disclose the RFP's issue date.
  • Buyers should disclose the due date for any questions or clarifications from suppliers.
  • Buyers should disclose when they will answer any questions or clarifications.
  • Buyers should disclose the date of the award announcement.