Propane versus Nat GasIt is hard for those not familiar with the propane extraction process from large narural gas pipelines to understand the process. Propane has a higher BTU content then Methane. Propane extraction is measured in the number of BTU's, Gigajoules or Therms which have to be paid for in current Methane (Natural Gas) prices. I am including a link to show some of the relationship.
https://tradingeconomics.com/commodity/propane
Hedging by pre-selling the commodity does limit upside and downside future pricing. It is also possible to buy replacement natural gas in the future market from a producer. As stated earlier this practice creates stability for S+P ratings. My experience is monies on the table have been lost because the futurists involved were not well informed.