Freedom Energy offers innovative and expertly backed natural gas solutions, and we work with the nation’s largest natural gas suppliers. As a trusted Energy Advisor, we work with clients to understand load requirements, operational needs, business objectives, and sustainability goals. In addition, our team will review current natural gas usage, risk tolerance (price and volume), and local natural gas market volatility. With that knowledge, we leverage our expertise, insights, and historical data to create a personalized solution that achieves short and long-term client goals.
We are supplier agnostic and help to identify the best short and long-term procurement strategies for our clients. Our team proactively reaches out to our clients to share information related to market volatility, potential opportunities, and our recommendations for dynamic strategic responses.
Load management begins with Basis tracking to establish when to buy. After selecting a purchase period, our team works to develop risk mitigation strategies specific to natural gas supply and enact a purchasing plan. The plan may include multiple load tranches for basis or basis and commodity.
With our experience in the industry and long history of assisting our clients, our expertise provides value in the constantly changing energy market. As a result, we identify the best contract and rate options which may include locking in natural gas rates with a fixed price, variable price, or procuring on the spot market.
Time the Market and Lock in your Budget
A fixed price solution for natural gas supply provides a set price for a defined volume for a specific contract term providing budget protection from natural gas price fluctuations. Our team monitors daily markets and strategizes with clients on how and when to purchase natural gas.
Procurement timing is critical. A fixed rate helps avoid price spikes but knowing when to buy is equally essential.
Benefits of Fixed Price include:
- Commodity is fixed, Basis is fixed, and your volume is defined for a fixed term.
- Cost stability protects from market volatility and fluctuations in the gas market.
- Greater budget certainty and predictability, and best when clients are confident in predicting usage.
- Works for clients with a low-risk tolerance or little budget flexibility.
While this type of solution provides price stability and budget certainty, some potential risks are associated with a fixed-price solution. For example, changes in usage patterns may have a negative impact. Our team advises clients on the best time to purchase and when to extend existing contracts. Waiting for contract expiration dates may not be the best time to buy. As industry experts, we watch the market for trends and drops in pricing, notifying you of advantageous periods.
Basis Plus NYMEX
Basis Plus NYMEX is a monthly-priced, variable product with two primary components, including NYMEX (commodity) and Basis (the regional adder). Under this structure, Basis is locked at a fixed rate to eliminate monthly regional risk while the NYMEX floats and settles monthly. This type of contract typically requires a specific contract volume to lock Basis and provides price stability while limiting exposure to regional risk.
NYMEX is the cost of the commodity and is based on the price of gas at a set point, such as Henry Hub. Basis can vary widely throughout the country and is the regional differential to the NYMEX Henry Hub price; it can be either an additional adder or a discount to the NYMEX price. Driven by regional supply and demand, it may be at a premium in high-demand areas or in over-supplied areas available at a discount.
Basis continually fluctuates based on supply and demand and includes delivery charges, taxes, fuel costs, and supplier margin.
Basis Plus NYMEX is a fixed Basis product where the commodity price floats monthly, and the volume is defined on transport.
Freedom provides a variety of customized procurement strategies by blending variable and fixed rate solutions to achieve an optimal solution to support your unique objectives.
Spot Market & Cash Purchasing
The natural gas market is complex and constantly changing. Purchasing on the spot market offers volume flexibility but also involves risk. Freedom offers load management services, including daily nomination and load purchasing via intraday trades or block buys to avoid penalties.
Combined heat and power (CHP), also known as cogeneration, provides more efficient fuel or heat and is a highly effective form of energy conversion. Using gas engines can achieve up to 40% energy savings compared to separate purchases of grid electricity and gas. When the fuel for a gas engine is in the form of a renewable, such as biogas or hydrogen, CHP can be a highly sustainable source of electricity and heat. Freedom Energy, along with our energy services partner, can provide cogeneration solutions that can be deployed in a wide range of environments to save money and reduce carbon emissions.
Fuel switching replaces inefficient fuels with cleaner and more economical alternatives, such as converting fossil fuels to natural gas or renewable options. In addition, complemented by efficiency measures and equipment and infrastructure upgrades, fuel switching is a simple approach to reducing energy consumption and costs while curbing carbon emissions in support of sustainability goals.
Benefits of Fuel Switching include:
- Solution for tempering rising energy prices and the drive for low carbon fuels
- Long-term energy cost savings and potential for improving economics of fuel switching projects
- Performance improvements
- Support for compliance requirements, regulations, and tariffs
- Energy security in that under certain market conditions, fuel switching can enhance the reliability of the energy supply
- Environmentally friendly fuel switching can provide reputational capital with policymakers, investors, and consumers while positively impacting sustainability goals to reduce carbon emissions
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When sitting with a client and reviewing options for securing the next contract cycle of power or gas, you cannot help but turn to the topic of how we got to where we are today after years of reasonably normal [...]
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