Weekly Basis Report

Here is the weekly basis report which is representing the future price change when trading natural gas, the quoted price is the difference between the Henry Hub price and a specific location’s price – called the basis price. A basis position is one that has exposure to two different locations: the Henry Hub and separate location’s price.

Here are some basic understanding on how to measure natural gas:

A BTU is the amount of heat required to increase the temperature of a pint of water (which weighs exactly 16 ounces) by one degree Fahrenheit.

Since BTUs are measurements of energy consumption, they can be converted directly to kilowatt-hours (3412 BTUs = 1 kWh) or joules (1 BTU = 1,055.06 joules).

MBTU stands for one million BTUs, which can also be expressed as one decatherm (10 therms). MBTU is occasionally used as a standard unit of measurement for natural gas, and provides a convenient basis for comparing the energy content of various grades of natural gas and other fuels.

One cubic foot of natural gas produces approximately 1,000 BTUs, so 1,000 cu.ft. of gas are comparable to 1 MBTU.

MBTU is occasionally expressed as MMBTU, which is intended to represent a thousand thousand BTUs