Welcome! Here are the website rules, as well as some tips for using this forum.
Need to contact us? Visit https://heatinghelp.com/contact-us/.
Click here to Find a Contractor in your area.
NG pricing, Henry Hub vs City Gate
conversiontime
Member Posts: 87
in Gas Heating
Hey everyone
Just wanted to make a brief FYI for those considering conversion from oil to NG or are just curious about the price of NG. As I have discovered in my first winter post conversion, NG prices vary widely by geographic location, distribution, demand and other factors. The point being when I did all my research one major incorrect assumption was made that I hope others can avoid. What your local NG utility pays is not based on Henry Hub quotes that drive the futures market, but rather the cost at the "city gate" access point where the utility takes delivery from pipeline. In my area during the heart of winter, the cost per therm is almost double what is trading on HH. My utility changes cost per therm every month.
Still saving money but wish I had thought to request historical month by month therm cost before hand. I suspect once heating oil and NG spread return to more historical level NG in my area will be equal if not more based on high city gate delivery.
Just wanted to make a brief FYI for those considering conversion from oil to NG or are just curious about the price of NG. As I have discovered in my first winter post conversion, NG prices vary widely by geographic location, distribution, demand and other factors. The point being when I did all my research one major incorrect assumption was made that I hope others can avoid. What your local NG utility pays is not based on Henry Hub quotes that drive the futures market, but rather the cost at the "city gate" access point where the utility takes delivery from pipeline. In my area during the heart of winter, the cost per therm is almost double what is trading on HH. My utility changes cost per therm every month.
Still saving money but wish I had thought to request historical month by month therm cost before hand. I suspect once heating oil and NG spread return to more historical level NG in my area will be equal if not more based on high city gate delivery.
0
Comments
-
you have to look at the bill
which includes a number of other charges. Seasonal price trends matter, but you need to look at those in the context of wholesale prices in order to even begin to understand them.
Thanks to ever-increasing demand from the transportation sector, liquid fuels currently command a significant premium per BTU over gaseous fuels. Everything I read indicates this premium will continue and perhaps even increase. If you have information to the contrary, please share it.0
This discussion has been closed.
Categories
- All Categories
- 86.3K THE MAIN WALL
- 3.1K A-C, Heat Pumps & Refrigeration
- 53 Biomass
- 422 Carbon Monoxide Awareness
- 90 Chimneys & Flues
- 2K Domestic Hot Water
- 5.4K Gas Heating
- 100 Geothermal
- 156 Indoor-Air Quality
- 3.4K Oil Heating
- 63 Pipe Deterioration
- 917 Plumbing
- 6.1K Radiant Heating
- 381 Solar
- 14.9K Strictly Steam
- 3.3K Thermostats and Controls
- 54 Water Quality
- 41 Industry Classes
- 47 Job Opportunities
- 17 Recall Announcements