Gas - what is a good basis price?

[anonymous]

I was talking to a supplier today and they were offering a one year contract based on the Nymex price plus a basis of 26-27 cents per therm. Thus, if the Nymex price was 70 cents I would be charged 96-97 cents a therm. This does not include my local utility transport charge. My question is, for those of you that buy gas on the basis of Nymex plus, what is a good basis - does this seem good for the North East?

[tlev89]

I was quoted a locked in price of .92 in the nyc area.That doesnt include delivery.Delivery runs another .32 a therm.

[pete f]

I was talking to a supplier today and they were offering a one year contract based on the Nymex price plus a basis of 26-27 cents per therm. Thus, if the Nymex price was 70 cents I would be charged 96-97 cents a therm. This does not include my local utility transport charge. My question is, for those of you that buy gas on the basis of Nymex plus, what is a good basis - does this seem good for the North East?

That sounds like a bad deal. unless it includes delivery. My gas contracts are LTD closing price nymex plus .045 plus pass thru ( about .07-.086) and delivery, about .33 cent

[anonymous]

I was quoted a locked in price of .92 in the nyc area.That doesnt include delivery.Delivery runs another .32 a therm.


I need some help on terminology here. When you say 32 cents for delivery, what does that represent? Is that delivery from the wellhead to the city gate or is that delivery from the local utility to your store? Typically there are three prices which is why I ask this. The first price is the price for the commodity itself, then there is delivery from the wellhead to the citygate, then there is delivery from the city gate to your store.

[anonymous]

That sounds like a bad deal. unless it includes delivery. My gas contracts are LTD closing price nymex plus .045 plus pass thru ( about .07-.086) and delivery, about .33 cent


That is why I said in the north east, where you are you are much closer to the well head and that transport to the city gate is much less (I think).

[Ken]

Gas compamy charge the market price for the gas+ deliever why do you want to pay extra for it?
I had an offer before,they charge the day's market price,lock in for 1 year,no extra charge.I did,it was in sunmmer,save some money that year but the company will not offer it next year,I guess they didn't make money that way.