Natural gas prices drop across northwest B.C.

Northwest residents received a bit of good news for their pockets books as of July 1.

Northwest residents received a bit of good news for their pockets books as of July 1.

An application by Pacific Northern Gas to lower the residential rate for natural gas was accepted by the BC  Utilities Commission.

Pacific Northern Gas (PNG) cut the rate it charges for natural gas itself by 50 cents a gigajoule – from $4.06 a gigajoule to $3.56 – or 12 per cent.

That drops the overall rate to $15.027 a gigajoule or three per cent, once the delivery cost is factored in, and would be the second rate reduction this year.

The first was as of January 1 and both reductions reflect the continuing drop in the price of natural gas caused by an increase in supply.

PNG is a delivery utility and passes through what it pays for natural gas to its customers. It cannot add to the price of the gas.

There is no change to the delivery cost of natural gas in the area.

PNG has for some time been hedging the price of the natural gas it buys – essentially fixing a future price now to avoid the possibility of having to pay more if it is  bought on the open market at that future date.

But the utility stopped doing that a year ago and all of its hedge agreements will be finished this fall, says PNG official Janet Kennedy.

It means PNG could apply to lower the rate it charges for natural gas itself even more as those hedge agreements end and as current prices for natural gas fall.

“The current wellhead price for gas in northeast BC is approximately  $1.80/GJ and reflects supply and demand fundamentals that currently exist in the marketplace,” said  Kennedy.

“PNG is not able to forecast future gas costs (which are passed on to our customers with no mark-up), but there continues to be substantial media coverage regarding the significant (and growing) supply situation of natural gas in Northeast BC and across the continent.”

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Canfor announces permanent closure of Isle Pierre Mill

The company also announced curtailments at their pulp mills in Prince George.

COVID-19 and returning to safe operation

WorkSafeBC recognizes the importance of worker safety as businesses look to resume… Continue reading

Local governments receiving provincial grants

Meant for infrastructure projects and planning

LIVE: Procession to honour Snowbirds Capt. Jennifer Casey comes to Halifax

Snowbirds service member died in a crash in Kamloops one week ago

RCMP facing ‘systemic sustainability challenges’ due to provincial policing role

Provinces, territories and municipalities pay anywhere from 70 to 90 per cent of the cost of the RCMP’s services

One man dead after standoff with Chilliwack RCMP

The Independent Investigations Office of B.C. is investigating the RCMP’s role in the death

B.C. employers worry about safety, cash flow, second wave in COVID-19 restart

A survey found 75 per cent of businesses worry about attracting customers

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

Ex-BC Greens leader Andrew Weaver says province came close to early election

Disagreement centred on the LNG Canada project in northern B.C.

Canada’s NHL teams offer options to season-ticket holders

Canadian teams are offering refunds, but also are pushing a number of incentives to let them keep the money

B.C. premier says lessons to learn from past racism during response to pandemic

B.C. formally apologized in the legislature chamber in 2008 for its role in the Komagata Maru tragedy

Snowbirds to remain at Kamloops Airport indefinitely after fatal crash

small contingent of the Snowbirds team is staying in Kamloops, acting as stewards of the jets

Most Read