According to the U.S. Energy Information Administration , though the cold snap in the Northeastern United States is expected to ease over the weekend, the price of natural gas in New England and New York City is at its highest level all winter. In fact, the natural gas prices, well over $ 30/MMBtu in New England, are the highest they’ve been since January 2004. Here are the details.
* The EIA’s Friday report stated that natural gas pipelines from the west and south into New England are constrained, limiting supplies. Demand is high and “gas prices are now high enough that it may be economically attractive to use oil for power generation in some cases,” the EIA stated.
* Bloomberg reported that New England is now relying on power plants fueled by oil and coal in spite of shifting away from those resources in recent years.
* The grid operator, ISO New England, stated that oil units have been called up as a hedge in case of a disruption of natural gas as temperatures in the region plummeted well below average this week.
* The EIA reported a week ago that natural gas prices in the Northeast were the highest in the nation due to high international prices and declining production in eastern Canada.
* Shipments of liquid natural gas into the Boston area and New Brunswick, Canada, declined in 2012 because global market conditions directed those shipments elsewhere, the EIA stated.
* The EIA stated that recent forward market prices indicate that natural gas in New England may rival the sky-high prices of northwestern Europe.
* New England has historically depended on higher-priced imports of liquid natural gas due to a lack of local storage facilities, lack of locally produced natural gas, remoteness from the rest of the North American natural gas grid and high seasonal demand peaks.
* About a quarter of New England’s daily natural gas demand comes from liquid natural gas and in the winter, liquid natural gas accounts for 60 percent of New England’s total natural gas supply needs.
* According to Dow Jones Business News , gas prices have risen about 10 percent in January as investors braced for winter weather and rising demand. However, those prices dropped overall about 3 percent on Thursday with projections of warmer weather on its way.
* Still, Dow Jones reported, natural gas prices may continue to be higher until February — the last month of projected below-normal temperatures.
Energy News Headlines – Yahoo! News
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