Scorching Heat Drives Natural Gas Higher $NG_F $UNG Posted: 17 Jul 2012 12:33 PM PDT Seasonally speaking, July is a good month to get long natural gas ahead of its best five months, August through December. This unique commodity has a dual demand season based on hot and cold weather temperatures. In the United States, natural gas, coal, and refined petroleum products are used as substitutes in electric power generation. Electric power generators switch back and forth, preferring to use whichever energy source is less expensive. Natural gas is also a cleaner burning fuel source, and as crude oil stubbornly remains elevated despite slowing global growth, the less expensive product is still natural gas.
I believe it has no relevance to the pipeline unit, but I do recall PVX had hedges on natgas, oil, and NGL prices. Not sure if PBA has continued to use those to optimize profitability in their processing division.