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.”

 

Just Posted

Fires still burning near Telegraph Creek

BC Wildfire Service assures residents of a proactive plan heading into wildfire season

Northwest entrepreneurs pitch their plans for cash prizes

ThriveNorth announces 12 finalists in this year’s business challenge

Gas prices spike in northern B.C. ahead of the long weekend

Fuel went up 17 cents overnight in Prince Rupert

Cyclist braking stigma on addiction from coast to coast

Mathew Fee aims at world record for longest distance on BMX bike while sharing his story of recovery

Hotcakes

On April 6 there was a community pancake breakfast held at the… Continue reading

VIDEO: Alberta man creates world’s biggest caricature

Dean Foster is trying to break the world record for a radio show contest

B.C. RCMP receive application for Police Cat Services

RCMP announced the launch of the Police Cat Services unit as an April fools joke

Kirkland Signature veggie burgers recalled due to possible metal fragments

Recalled products came in 1.7 kg packages with a best before date of Apr. 23, 2019

Chaos at the ferry terminal for people heading from Vancouver to the Island

Easter crowds create backlog at Tsawwassen ferry terminal

Parents of 13 who tortured children get life after hearing victims

One of their daughters fled their home and pleaded for help to a 911 operator

Flooding, climate change force Quebecers to rethink relationship with water

Compensation for victims of recurring floods limit to 50% of a home’s value, or a maximum of $100,000

Storms blast South, where tornadoes threaten several states

9.7 million people in the Carolinas and Virginia at a moderate risk of severe weather

Private cargo ship brings Easter feast to the space station

There are three Americans two Russians and one Canadian living on the space station

Notre Dame rector: “Computer glitch” possible fire culprit

The fire burned through the lattice of oak beams supporting the monument’s vaulted stone ceiling

Most Read