NYMEX's natural gas futures contract price is widely used as the benchmark price of natural gas. The contract unit is 10000mmBtu (million British thermal units) per batch, and the delivery place is HenryHub, Louisiana, which connects 16 interstate natural gas pipeline system to transport natural gas in sediments in these areas.

Natural gas futures delivery shall be conducted in accordance with applicable federal administrative decrees, federal laws, state laws and local methods. The goods are delivered through the connection point of the buyer's equipment, and the buyer begins to bear the risk of loss. The natural gas provided by the seller shall be free from lien and pledge disputes, unpaid taxes or other payments. According to the characteristics of natural gas futures, the delivery puts forward corresponding requirements for grades and delivery methods.

Delivery method and time

Natural gas shall comply with the regulations approved by FERC, and shall take effect upon delivery by SabinePipeLine Company in Port Henry, Louisiana, USA. These deliveries are the fulfillment of delivery obligations under futures contracts.

Natural gas futures contracts are delivered in kind, and small natural gas futures contracts are delivered in cash.

Delivery shall not be earlier than the first calendar day of the delivery month or later than the last calendar day of the delivery month. TAS (trading at settlement price) is applicable to the trading of spot month (except the last trading day), second month and third month contracts, and is conducted according to the current TAS rules. All TAS merchandise transactions end at 2: 30 pm (EST) every day. When the basic commodity is settled according to 1: 1, the goods that meet TAS will be placed by the benchmark price (the value is set to 0) plus or minus 1 difference (the maximum 10 price fluctuation unit). The TAS transaction of the benchmark price is equivalent to the traditional TAS transaction and will be settled at the final settlement price of the day.

Delivery procedure

Submit the letter of intent for delivery first and accept the letter of intent.

Short members shall submit a complete and signed letter of intent for delivery to the Exchange. The letter of intent for delivery shall be in the format specified by the Exchange, including the following information: the name of the seller's customer, the pipeline for the seller to transport the goods to HenryHub, the number of contracts to be delivered and other information required by the Exchange.

A multi-head member shall submit a complete and signed letter of intent for acceptance to the Exchange. The letter of intent shall be in the format specified by the Exchange, including the following information: the name of the buyer's customer, the number of contracts accepted for delivery and other information required by the Exchange.

Both the letter of intent for delivery and the letter of intent for acceptance must be submitted before 1 1: 30 am on the first working day after the last trading day.

The second is the notification day.

The clearing house will match the delivery notice with the acceptance letter of intent as far as possible according to the size of the position and the established export and acceptance channels, and submit a copy of the letter of intent to the corresponding clearing members before 2: 00 pm on the first working day after the last trading day. The date when the letter of intent is sent to the clearing member is called the notification date. Thereafter, the buyer or seller may send a change notice and a settlement notice in the format specified by the Exchange to the other party to change the name of the pipeline, and shall submit a copy of the change notice to the Exchange.

The third is the notice of settlement and the notice of non-settlement.

The seller shall submit a complete and signed settlement notice to the buyer in the format specified by the exchange no later than the morning of the last business day before the delivery month 10: 30, and at the same time submit a copy to the exchange, indicating that the goods are ready for transportation according to the letter of intent for delivery and the letter of acceptance.

If the seller is unable to use HenryHub's delivery equipment for delivery according to the letter of intent for delivery and the letter of acceptance due to honesty, the seller shall submit a notice of non-delivery in the format specified by the Exchange to the buyer no later than 10: 30 am on the last business day before the delivery month, and at the same time submit a copy of the notice of non-delivery to the Exchange, explaining the reasons why it cannot make delivery according to the regulations. The seller may suggest using another delivery place or the delivery place that the seller wishes to use in the outstanding notice.

If the failure to settle accounts is due to the seller's failure to use HenryHub's delivery equipment to deliver the goods, the seller shall ask its customers to increase the initial security deposit equivalent to 25% of the total contract price listed in the delivery instruction when issuing the notice of failure to settle accounts. The seller shall add margin to the exchange on the second trading day. In addition, the seller shall submit a revised letter of intent for delivery to the Exchange no later than 4: 00 pm on the last business day before the delivery month, and at the same time submit a copy to the buyer, indicating the location of the revised pipeline. The seller shall also submit a notice of settlement or a notice of inability to settle again to the buyer, and submit a copy to the exchange, indicating the reasons for the inability to settle again.

If the settlement cannot be made because the buyer can't guarantee to transport the goods with HenryHub's delivery equipment, the buyer shall submit the revised acceptance letter and certificate to the Exchange no later than 4: 00 pm on the last business day before the delivery month, and submit a copy to the seller. The revised acceptance letter lists the location where the changed pipeline connection point can receive the goods at HenryHub, and the certificate indicates that the goods can be delivered according to the conditions specified in the delivery letter and the revised acceptance letter. Or submit the unsettled notice to the seller again and submit a copy to the exchange, and indicate the reasons for unsettled again.

Of course, the delivery rules of natural gas futures contracts also stipulate the delivery procedures of substitutes, and also involve the measurement of commodities and the payment of delivery deposits. Generally speaking, the delivery according to the terms of the natural gas futures contract is final and there should be no more requirements.