IOWA NATURAL GAS ASSOCIATION
BRIEF NEWS LETTER
June 10, 2008
NATURAL GAS PRICE WILL INCREASE.
There have been items in the news lately that indicated the price of natural gas could be 25 to 30% higher for the next heating season.
Here is what AGA has said about the future price of natural gas.
“NATURAL GAS MARKET SUMMARY– natural gas prices remain at the forefront of gas market issues, today. If the current level of natural gas acquisition cost is sustained through the summer, consumers may face substantial increases in bills for the 2008-2009 winter heating season, even if the winter is just average in terms of heating degree days. AGA surveys of winter heating season supply portfolio building practices have shown clearly that the largest volume of gas purchased for storage or flowing supply during the winter is purchased utilizing the first-of-the-month index pricing mechanism. This means that large portions of the gas supply for winter ultimately get priced at market levels during the months preceding the actual start of winter, which are currently $4-5 higher than during the winter of 2007-2008.”
This is what the Energy Information Administration, Official Energy statistics from the U.S. Government says, “The Henry Hub natural gas spot price averaged $7.17 per thousand cubic feet (Mcf) in 2007 and is expected to average about $9.70 per Mcf in 2008 and $9.40 per Mcf in 2009.”
This information can be found on their respective web sites.
NEW WEB SITE LINKS TO THE INGA WEB SITE
We have added new web site links!!!! The links to Natural Gas information can be a tool to keep you informed of what is happening in the industry.
The categories and links will continue to be updated as we find sites that we believe might be beneficial to the membership and public.
If you should find a web site that you believe we should add to the list, please let us know and also if there is a websites that you believe we do not need, let us know that also. To get information to us, please use the “CONTACT US” tab on the web site.
We have addedthree new sites to the link list.
“THE NATURAL GAS SUPPLY ASSOCIATION” which is listed under the category “Natural Gas Associations/Alliances” This web site has information about the supply of natural gas. This association represents the Nation’s Suppliers of Natural Gas.
“ENERGY INFORMATION ADMINISTRATION, THE OFFICIAL STATISTICS FROM THE U.S. GOVERNMENT” which is listed under the category “Government”. This site provides the Natural Gas Weekly Update. The update includes information about the supply, demand, price, storage trends, and many other topics about the natural gas industry.
“FEDERAL ENERGY REGULATORY COMMISION (FERC)” which is listed under the category “Government” This site provides information about the Natural Gas markets and their national and regional overviews.