Natural gas prices are rising nationwide as colder months approach, but New Mexico is experiencing stable rates.Kyle Brayton, director of gas management at New Mexico Gas Company, said, “We’re expecting the January prices to end up around about $4 per million BTU in our customers’ bill. That would be about $0.40 a therm. In February, it’s looking like the baseload prices will be around $3.50, or $0.35 per therm. Prices are generally going to be stable and consistent with what we saw last year.”The company attributes this stability to nearby supply from the San Juan and Permian Basins. “It gives us both a local supply that we have access either directly to our system or with relatively little pipeline transportation from those basins. It gives us the opportunity to make day-to-day decisions based on how much gas we may need and what pricing indexes look best for the upcoming days,” Brayton said. Planning for winter gas needs begins in late spring, with the company comparing offers from about 60 gas suppliers and using contracts to lock in or cap prices. They also buy and store cheaper gas for winter use to help keep costs down.Brayton advises customers who are looking to try and save on their bill to invest in efficient furnaces or water heaters and seal windows and doors. New Mexico Gas also recommends its budget billing program, which spreads annual expected costs into consistent monthly amounts. They say about one-third of their customers use it. “I think when the data was produced that, some of these national reports are looking at to today, even in that short amount of time, the expectation for those prices can change fairly rapidly. So, we are seeing much lower prices going up into January and February.” You can keep track of the monthly cost of gas here.
Natural gas prices are rising nationwide as colder months approach, but New Mexico is experiencing stable rates.
Kyle Brayton, director of gas management at New Mexico Gas Company, said, “We’re expecting the January prices to end up around about $4 per million BTU in our customers’ bill. That would be about $0.40 a therm. In February, it’s looking like the baseload prices will be around $3.50, or $0.35 per therm. Prices are generally going to be stable and consistent with what we saw last year.”
The company attributes this stability to nearby supply from the San Juan and Permian Basins.
“It gives us both a local supply that we have access either directly to our system or with relatively little pipeline transportation from those basins. It gives us the opportunity to make day-to-day decisions based on how much gas we may need and what pricing indexes look best for the upcoming days,” Brayton said.
Planning for winter gas needs begins in late spring, with the company comparing offers from about 60 gas suppliers and using contracts to lock in or cap prices. They also buy and store cheaper gas for winter use to help keep costs down.
Brayton advises customers who are looking to try and save on their bill to invest in efficient furnaces or water heaters and seal windows and doors. New Mexico Gas also recommends its budget billing program, which spreads annual expected costs into consistent monthly amounts. They say about one-third of their customers use it.
“I think when the data was produced that, some of these national reports are looking at to today, even in that short amount of time, the expectation for those prices can change fairly rapidly. So, we are seeing much lower prices going up into January and February.”
You can keep track of the monthly cost of gas here.
