6 things to consider when choosing a natural gas provider

When you’re choosing a natural gas provider for your business, it makes sense to focus first on price. But there are several other factors to consider. The best natural gas partner for your business is one that can help you build a strategy to meet your short and long-term business goals.

Whether you’re exploring options for your small business or on behalf of an industrial company with a large footprint, here are 6 questions to guide your decision making.

1. What’s the right natural gas strategy for my business?

The natural gas market can be unpredictable. There are many things out of your control — like weather patterns and changing regulations and technological innovation — which makes managing natural gas a challenge for both large and small businesses.

Considering the recent volatility of the market (and likelihood that prices will continue to fluctuate for some time) it’s beneficial to work with a partner who can manage a layered hedging strategy on your behalf. This active approach involves continuously tracking the markets and taking advantage of opportunities when prices drop.

2. What’s the right natural gas product for my business?

Not all commercial natural gas providers will offer the same options. In the industrial sector especially, it’s important that you work with a partner with a wide variety of products, services, and contract options that can be customized to help you meet your organization’s goals while managing operating expenses.

3. Is my natural gas provider transparent?

Before agreeing to a long-term partnership, you’ll want to make sure that your natural gas supplier is open and honest about every detail of your contract. Things like regulatory changes, swing, material deviation, and force majeure can potentially alter the agreement you’ve signed. Insist that a representative from the provider you’re considering is willing to sit down with you and go over every detail in the document.

4. Does my provider have a reputation for excellent customer service?

Make sure the provider is willing to assign a dedicated representative to your business. This is crucial because they will serve as a trusted extension of your team, helping you navigate the market.

5. How financially strong is my provider?

A stable supply of natural gas is essential to ensuring a business’ operation. Before entering into a long-term agreement, be sure your natural gas provider is reliable and financially healthy. Before signing a contract, consider requesting audited financial information from the provider.

6. What’s my natural gas provider’s company structure?

Many providers are subsidiaries of larger international companies and may not have the time or ability to focus on your industry or local market. Privately held companies are often more flexible, with dedicated teams for each customer. When researching natural gas providers, look for one that’s privately held and domestically based.