How is natural gas marketed?
Natural gas is a commodity. It is sold by the marketing departments of individual producers, by groups of producers and by independent marketers to other oil and natural gas producers, petrochemical companies, industrial and commercial customers, power producers and gas distribution companies.
Like most commodities the price of natural gas fluctuates due to many factors. These factors include:
- supply and demand
- regional pipeline capacity
- costs for transportation, storage and the price of other energy supplies
Encana’s marketing activity is targeted to large industrial users, local distribution companies, wholesale customers and commodity purchasers. We do not provide energy services of any kind to other third-party entities or make sales in the retail energy market.
Encana Natural Gas Inc., a subsidiary of Encana Corporation, also operates six compressed natural gas fueling stations in Canada and the U.S.
How is natural gas transported?
Natural gas is transported through a network of interconnected pipelines mostly buried underground. Natural gas is piped from the well to a processing plant and from the plant to various types of consumers. There are three main types of pipelines:
- gathering - moves natural gas from the wellhead to the processing facility (low pressure, small diameter pipe)
- transmission - moves natural gas from the processing facility to distributors (high pressure, variety of pipe diameters)
- distribution - moves natural gas from the distributer to the end user like homes, businesses and industries (low pressure, small diameter pipe)
In order for natural gas to flow through transmission pipelines, it must be compressed by heavy duty engines to many times its atmospheric pressure. This can take place at many intervals along the entire pipeline network in compressor stations to keep the gas flowing.
Pipelines are the safest, most reliable and cost-effective way of transporting natural gas.
Learn about benefits of natural gas