NatGas Trading in NYC Hits $175/Mcf – Highest Ever Recorded!

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Brrrr! If you live anywhere in the northeastern part of the country, you’re likely bundled up sitting at home, or bundled up sitting at work. Most schools dismissed today because of the brutally low wind chill values–minus 30 degrees Fahrenheit in upstate NY where MDN is headquartered. Over the past couple of days MDN has highlighted the news that with this latest winter ‘bomb cyclone’ as it’s called, the lack of natural gas pipelines to New England–to feed both homeowners who heat with gas and utilities that use gas to generate electricity–can no longer be ignored. Two days ago we told you that New England now has the dubious distinction of paying the highest average price for natural gas in the entire world (see New England’s Lack of Pipelines = Most Expensive Gas in the WORLD). Yesterday we told you that at least part of the blame for New England’s sky high natgas prices can be laid at the feet of New York Gov. Andrew Cuomo (see New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices). However, lack of pipelines doesn’t only affect New England states, it also affects New York itself. Yesterday history was made when the spot price for natural gas in New York City hit an amazing $175 per thousand cubic feet (Mcf) at the Transco Zone 6 New York trading hub. Incredible! In Boston, at the Algonquin City Gate trading hub, the spot price briefly hit $105/Mcf! Below we have the news about these record-breaking prices from the natgas price experts–Natural Gas Intelligence (NGI). Each weekday NGI publishes their MidDay Price Alert by 1 pm Central, both emailed and available at this webpage: www.naturalgasintel.com/middayprices. The MidDay Price Alert, which includes Intercontinental Exchange trade data, gives gas traders (and those with a keen interest in prices) the latest intel on what’s happening with prices at 125+ trading hubs across the country. Here’s what yesterday’s MidDay Price Alert showed for trading in the northeast…

Jeremiah Shelor | January 4, 2018

Amid blizzard conditions along the East Coast Thursday, natural gas spot price blowouts ran rampant for the second straight day, including trades as high as $175/MMBtu in New York City, according to NGI’s MidDay Alert.

After spiking Wednesday ahead of forecasts calling for winter precipitation to hit the Mid-Atlantic and Northeast, points across the region surged higher Thursday. As of Thursday afternoon, Transco Zone 6 New York was averaging $140.92, a whopping $92.58 day/day increase, MidDay Alert prices showed.

Thursday’s NGI’s MidDay Alert showed multiple other points with near-$100 trades, including Algonquin Citygate (up $39.87 to $78.35), Iroquois Zone 2 (up $63.30 to $107.20) and Tetco M3 Delivery (up $50.06 to $94.90).

The $175 gas reported at Transco Zone 6 New York sets a new record high at the point and across North America, according to Daily GPI historical data.

The figure easily toppled Transco Zone 6 New York’s previous high of $125 set during the polar vortex-influenced winter of 2013/14.

A powerful, fast-developing storm — dubbed a “bomb cyclone” — struck the East Coast overnight, and weather outlets were reporting blizzard conditions across the Mid-Atlantic and Northeast Thursday, including strong winds and heavy snowfall in population centers like Boston and New York. The storm was already causing power outages and disrupting travel by Thursday afternoon.

The National Weather Service (NWS) predicted the storm would “move northward into the Northeast by Thursday afternoon, while ending over the Mid-Atlantic Coast by Thursday evening.  The heavy snow will continue over the Northeast overnight Thursday beginning to wane on Friday morning. The snow will taper off to light snow over parts of Northern New England by Friday evening.

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Below is an extract from yesterday’s MidDay Price Alert showing the range of gas trade prices in both Appalachia (the Marcellus/Utica region), and the northeast. Notice that in Appalachia the average price of trades was mainly in the $3.50-$4.50/Mcf range, whereas in the northeast it was in the $70-$90/Mcf range. With more pipelines from the Marcellus to the northeast, the prices in the northeast would come down, dramatically.

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Be sure to bookmark this page to track the price of natural gas across the country: http://www.naturalgasintel.com/middayprices