“Permanent Pricing” for New York Natural Gas
Gas Pricing Without Guesswork
At ENGIE, we offer a truly fixed price. If a variable rate tied to the NYMEX settle is the strategy, there are options to convert to an all in fixed. We will provide measured guidance while you are inside one of our plans to ensure that the chosen strategy continues to align with your business goals.
Gas Price Volatility: Unusual and Unrelenting
Gas NYMEX strip has ticked to levels that we haven’t seen in 15 years. To gain perspective on the volatility, just two years ago, the 2020 NYMEX strip was the lowest in 22 years. Because of this volatility, it’s imperative that you have the opportunity to consult your Energy Supply Professional to create a supply solution that addresses the market and your organization’s objectives.
Price volatility on an annualized basis for natural gas in the U.S. has averaged more than 80% for most of 2022. This chart shows the daily close for the prompt month since 2020 began. Unprecedented geopolitical factors have combined with extreme weather patterns and other variables to create these conditions this year.
Until June, markets in New York and New England had been spared the extreme weather patterns found elsewhere. In terms of Cooling Degree Days (CDDs), these markets were tracking along historic means. That changed in June, and these markets have been trending significantly above historic averages for CDDs since then.
Market Based Business Model
The interdependence of gas and power markets validates ENGIE’s dual fuel business model. As a leading power and gas supplier, we are positioned with a comprehensive look at the strong relationships between electricity and gas supply and demand in this market.
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| David Weakley
Sr. Business Development Manager, Natural Gas, NY