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How to Become a Natural Gas Supplier Company

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Natural gas is a vital resource in all sectors of any economy. If you are seeking to establish a natural gas supply company in the U.S., you need to register with the public utility commission in the state where you intend to supply. Because of the security, health and environmental issues related to natural gas, this commission will authorize research to determine the mode and safety of supplying natural gas in any state before it issues such a license.

Find a supply source. Domestic gas production in the U.S. comes primarily from five states--Louisiana, New Mexico, Oklahoma, Texas and Wyoming. The cost of supplying natural gas is relatively high for individual businesses, but you can enter into a franchise with existing gas supply companies to save on costs.

Prepare a supply plan. Interstate suppliers are required to prepare financial and technical plans. These will demonstrate their capacity to supply natural gas. The supply plans are presented to the public utility commissions of all the states where they intend to supply. If the company was not previously in existence, it should employ trained professionals and marshal a bid before applying to supply gas.

Insure the company. Insurance for assets and employees is a requirement in many states to cover losses and damages to the company and the public.

Apply for a license. Fill out an application form with the public utility commission or board in your state and address your application to the secretary of the commission. You must demonstrate financial fitness commensurate with the service you intend to provide. Avail the balance sheets of previous financial years, listing subsidiary companies, credit rating or type and amount of insurance. The commission vets management as well as technical fitness before issuing a supply license.

Sign a purchase contract. Long-term contracts for the purchase of natural gas from gas drilling companies are more reliable than short contracts. Once a contract becomes operational, open the supply and distribution outlets in selected locations that are both visible and accessible.

Advertise the company. Register with the National Gas Association for corporate benefits. Start supplying the natural gas.

References

About the Author

Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.

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