The Situation:

• Marcellus Shale Gas caused a depression in basis prices in the Ohio-PA market

Next Steps:

• World Energy provided statistical analysis supporting the decision to lock a 5-year purchase of natural gas to take advantage of the shale presence, then ran series of competitive events and negotiated supply contracts for base load supply.

The Result:

• Steel producer was able to save $13 million in basis costs alone relative to historical market prices.