Purchasing Natural Gas - Resources for Greenhouse Growers
Creating a Buying Plan
If you're a greenhouse grower that's burning natural gas, you should have a well thought out buying plan that meets your own particular operating needs. Do you have a price threshold you need to meet? Do you want to know what your long-term natural gas prices will be? How much of a risk are you willing to take to capture low natural gas prices?
To understand your natural gas buying plan objectives and your buying plan options, review the presentation on Your Natural Gas Buying Plan.
Natural Gas Prices
There are many sources of natural gas pricing and almost all services that provide real-time pricing require a subscription fee. The NGX natural gas pricing link provides some recent historical spot pricing at several Canadian trading points. The NYMEX link provides a snapshot of future gas prices on the New York Mercantile Exchange. Prices are posted in US$/MMBtu and are time delayed -- they are not real-time prices. To secure current, real-time pricing please contact your supplier or agent.
NGX and NGX -- Natural gas prices, NYMEX Natural gas pricing
The Natural Gas Price Advantage Over Oil
Over the last four years, natural gas has sustained a significant price advantage over oil for all but a few months. Forward pricing suggests that natural gas should continue to hold its price advantage in the near future.
The graph below shows the relative price advantage of one fuel over the other. The prices compared are the price of natural gas at Dawn and the price of #6 oil (with 1% sulphur content) at New York Harbour. The green line falling within the green zone indicates a price advantage over oil. The green line falling in the gray zone indicates a price advantage of oil over natural gas.
A price ratio of 0.5 means that natural gas is half the price of oil.
A price ratio of 1.5 means that natural gas is one and half times more expensive than oil.
Choosing an Energy Marketer
Looking for an energy marketer? Check the Ontario Energy Board website for the listing of licensed natural gas energy marketers.
Assessing Energy Marketer Contract Options
Energy marketers offer a variety of contracting options for customers who want to buy natural gas. What option is best for you? What other options might you want to consider? For a high-level comparison of the pros and cons of various natural gas contracting choices, check the Energy marketer contract options.
Transactions & Services
To help you select the right service, or combination of services, that can help you meet your balancing needs, we have created the transaction and service selector tables. Click here go to Transactions & Services information on the Doing business with Union Gas section.
If you’re looking for some help analyzing your gas use or doing volume and energy conversions, check our Analyze your Energy Use tab in the Save Money & Energy section.