Gas sales profiles influence of contracts

If the gas purchaser is a company which distributes gas to domestic and industrial end users, he typically wants the producer to provide 

The better the producer can meet these two requirements, the higher the price paid by the purchaser is likely to be. 

If the distribution of gas in a country is run by a nationalised or state owned company, there is effectively a monopoly on this service, and prices for gas distributed through a grid system will have to be negotiated with the distribution company. If the market for distribution is not regulated then opportunities arise to sell gas to other customers and 

This situation has recently arisen in the UK where competition for gas sales has been encouraged. Gas producers can enter into direct agreements with consumers (ranging from power stations to domestic users), using the national distribution grid if necessary. The impact of this change on gas price has been significant a reduction of around 60% in the period of a year. 

When a contract is agreed with a consumer, some delivery quantities will usually be specified such as 

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