Natural gas spot price in New England climbs to $19.28/MMbtu

2/12/2015
JONATHAN CRAWFORD

BOSTON (Bloomberg) -- New England wholesale power jumped after cold weather sent spot prices for natural gas to an 11-month high.

Gas for delivery Thursday at the Algonquin City Gates, which includes Boston, climbed $2.82 to $19.28/MMbtu in trading on the Intercontinental Exchange, the highest since March 14. The price of the power plant fuel for delivery Friday fell to $18.16.

The low temperature in Boston on Thursday was forecast to be 10 degrees Fahrenheit (minus 12 Celsius), 14 below normal, while New York City’s may be 8 degrees, 20 less than usual, according to AccuWeather Inc. of State College, Pennsylvania.

“From the higher amounts of oil currently present in the supply stack, it is apparent that additional units are running on oil,” Lindsey Cohen, a Boston-based power analyst at Genscape Inc. who covers the New England market, said in an e-mail. “The most likely candidate for this is Mystic, running their only unit that can operate on oil” as they await a shipment of liquefied natural gas.

Power plants running on oil and those capable of operating on oil and natural gas supplied 5.2% of the electricity that was generated in the New England market in 2014, according to ISO New England.

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