NYC Natural Gas Soars to Highest Since 2003 Amid Bitter Cold

By Bloomberg

Feb 03, 2023

image is BloomburgMedia_RPH21PDWX2PS01_04-02-2023_08-00-11_638110656000000000.jpg

A pedestrian crosses a street during a snow storm in New York, U.S., on Friday, Jan. 7, 2022. New York City experienced its first snow storm of the winter season with accumulations up to four inches in midtown Manhattan. Photographer: Stephanie Keith/Bloomberg

(Bloomberg) -- Natural gas prices skyrocketed in New York and Boston as bitter cold descends, boosting demand for the furnace fuel.

Next-day gas deliveries into a section of the Iroquois Gas pipeline that hauls Canadian gas into New York traded at an average of $164.80 per million British thermal units on Thursday, a 14-fold increase from Wednesday, according to Bloomberg data. That’s the highest since at least 2003.

Gas at Boston’s Algonquin City Gate Hub for Friday delivery traded at an average of $58, up from $12 on the previous day.

Prices eased on Friday, with weekend gas deliveries trading below $10 across major Northeast hubs, according to Paul Phillips, a senior strategist at Uplift Energy Strategy. That’s still about four times higher than the benchmark futures contract.

New York City is forecast to see bitter cold through early Saturday with temperatures dropping as low as 0F (-18C), according to the National Weather Service. Bostonians are being warned to stay indoors because the wind chill will make it feel like minus 30F. Temperatures are expected to start rebounding later Saturday and climb above freezing by Sunday.

--With assistance from .

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By Gerson Freitas Jr.