IBISWorld Offers Natural Gas Procurement Guide

Business intelligence firm IBISWorld released a report last week intended to give natural gas leverage in negotiations with suppliers. The report provides benchmark prices, 3-year price forecasts, supplier intelligence, RFP negotiation guidance, supply chain analysis, and a sample decision scorecard.

The report suggests buyers have low negotiating leverage. It suggests that this stems from customers’ limited ability to use substitute products for most applications (power, heating, cooking, industrial uses, fertilizers, and transportation) without incurring substantial switching costs. Furthermore, major natural gas providers can monopolize entire regions. Direct pipeline delivery can help mitigate these costs. Low-volume buyers tend to pay more per unit of gas. Finally, it recommends entering long-term, fixed-price contracts to lock in low prices and hedge against future increases.

eBook: Driving Visibility and Harmonization in EHS Practices
Sponsored By: Sphera Solutions

The New Energy Future - Challenges and Opportunities in Corporate Energy Management
Sponsored By: Edison Energy

Approaches to Managing EHS&S Data
Sponsored By: Enablon

The Corporate Sustainability Professional's Guide to Better Data Management
Sponsored By: Urjanet


Leave a Comment

User Name :
Password :
If you've no account register here first time
User Name :
User Email :
Password :

Login Now