U.S. West Coast power and natgas prices soar on extreme cold
Reuters
Published Dec 14, 2022 09:43
Updated Dec 14, 2022 09:53
(Reuters) - U.S. West Coast power and natural gas prices have almost tripled over the past couple of weeks and are on track to hit annual multi-year highs as freezing weather and snow blankets parts of California, and gas pipeline outages and constraints limit flows into the region.
In Northern California, next-day gas for Wednesday at the PG&E Citygate jumped to around $48 per million British thermal units (mmBtu), its highest since hitting a record $53 in December 2000, according to data from Refinitiv.
Gas at the Southern California (SoCal) Border rose to $50 per mmBtu, its highest since hitting $103 in February 2021 when Winter Storm Uri cut gas supplies from Texas and forced the Texas electric grid operator to impose rolling power outages.
That compares with a SoCal daily record of $136 per mmBtu also hit during the February 2021 freeze.
That puts PG&E gas on track to average $8.54 per mmBtu in 2022, which would be its highest since hitting an annual record $8.62 in 2008, according to Refinitiv data going back to 2000.
SoCal Border, meanwhile, is on track to average $8.30 per mmBtu in 2022, which would top its current annual record of $6.29 in 2021.
Next-day power for Wednesday jumped to $474 per megawatt hour (MWh) at the Mid Columbia (Mid C) Hub in Washington State and $411 in SP-15 in Southern California, their highest since September, according to data from the Refinitiv.
In September, daily prices at the Mid C hit a record of $1,040 per MWh, while SP-15 hit $550, its second highest ever.
SP-15 hit a daily record of $698 per MWh in August 2020 when an extreme heat wave forced California's power grid operator to impose rolling outages.
That puts Mid C on track to average $83.46 per MWh in 2022, which would top its current annual record of $64.94 in 2008, according to data from the Intercontinental Exchange.
SP-15, meanwhile, is on track to average $81.25 per MWh this year, which would be its highest since hitting an annual record $124.94 in 2001, according to ICE (NYSE:ICE) data going back to 2001.
Hub Unit State/Regio 2022 2021 Five-Year
n Year-To-Dat Average (2017-2021)
e Average Average
Power
Mid C $/MWh Washington 86.98 61.04 37.35
SP-15 MWh Southern 79.47 56.15 44.41
California
Gas
SoCal Border $/mmBtu Southern 8.30 6.29 4.43
California
Get The App
PG&E Citygate $/mmBtu Northern 8.54 5.02 3.62
California
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.