Today I was asked why the gas price posted in the blog header was $0.40 more than the one listed at TD. Gas prices differ for many reasons. It may be the type of natural gas, e.g. Alberta natural gas or the location of the gas distribution hub that determines price. For Alberta the main hub is AECO’s ‘C’ hub in Suffield. Today’s price there was $3.19 per BBTU. That is to say that the ‘Spot Price’ at AECO ‘C’ of the shortest term contract available (i.e. gas delivered in November) is $3.19 per BBTU.
Commodities traded in New York on the NYMEX have their own prices. Gas is also expressed in BBTUs but it is deliverable at the Henry Hub in Louisiana. There Natural Gas Contracts for November (Spot Price) is $3.47. However, the data supplier for this blog apparently has already switched to December Prices since we’re nearing the end of the Month (that is my guess). The NYMEX price for December contracts was today: $3.81 per BBTU.
By the way, AECO prices are in Canadian Dollars; those on NYMEX are in U.S. Dollars. One thousand cubic feet of gas (Mcf) -> 1.027 million BTU = 1.083 billion J = 301 kWh