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Procurement Market Intelligence Report

Natural Gas
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?

What is the average price of Natural Gas?

This procurement report includes pricing information to help you purchase Natural Gas. 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 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 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?

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 with a reduced risk of unexpected costs.

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

Find the vendor to meet your needs

Where can I purchase ?

During the three years to 2020, market share concentration has been low in the natural gas market. While there are an estimated 445 suppliers in the market, none control more than 5.0% of market revenue. ProcurementIQ estimates that the top four suppliers have generated roughly 12.0% of market revenue in... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Supply Chain

Where do you source your primary raw materials?

Have you ever experienced supply chain disruptions resulting in insufficient supplies of natural gas products?

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?

Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?

How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?


How do you keep up to date on natural gas regulations? What percentage of your revenue is spent on compliance?

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 with output due to more stringent requirements by regulators?

Energy Consumption

How has the 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?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should include the index price per million BTUs and a fixed price per million BTUs.

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.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

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.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk is high in the natural gas market. The major factors that impact natural gas production include crude oil prices and production, as well as the goods associated with storage and transport, the prices of which are all subject to substantial volatility. While there is little risk that... Subscribe to learn more.