The deregulation of the natural gas sector allowed the creation of new companies, gas banks or gas marketers, for example CoWest. In its first year of operations, CoWest had the opportunity to bid on a fixed price long-term contract to supply gas to a cogeneration plant.
The focus of the case is to investigate the possibilities of putting a deal together using financial derivatives.
Learning Objective: The objectives of this case are to educate students how to structure a deal and introduce them to the Natural Gas Market apart from the Commodity Market.
Publication Date: 05/14/1996
This is just an excerpt. This case is about Finance