The price of natural gas reaches an eight-year low

This winter, Gaz Métro customers will enjoy the most competitive heating bill prices in the residential and business markets

MONTREAL, Oct. 21 /CNW Telbec/ - Since the summer of 2008, market prices of natural gas have been falling. Gaz Métro customers benefit directly from that drop, since the price of natural gas supplied by Gaz Métro¹ has plummeted from 35.503¢/m³ in July 2008 ($9.37 per gigajoule (GJ)) to 18.301¢/m³ this month ($4.83/GJ), a 48% plunge in two years and its lowest price in eight years.

In 2010, the quantities of natural gas available in North America have stayed at relatively high levels, with inventories higher than the average of the past five years.

The continental supply of natural gas is plentiful, mainly due to the increase in production from non-traditional sources in the United States. The market prices of natural gas at the Alberta border have remained on average at $4/GJ during 2010. 

Natural gas is more economical than electricity or heating oil

The current natural gas prices confirm the favourable competitive position of natural gas as a source of energy for Québecers.

As the heating season opens, Gaz Métro customers have something to smile about. Heating a typical home² with natural gas costs 11% less than electricity, and 15% less than fuel oil.

For a typical business customer³, the competitive advantage of natural gas is even more striking, and has been so for even longer. Natural gas has been cheaper than electricity for the past 11 years, and costs at least 36% less this year. Compared with heating oil, natural gas has been less expensive for the past 5 years and is at least 30% cheaper this year. These savings translate into several thousands of dollars.

The competitiveness of natural gas: a plus for the environment

In the commercial and industrial markets, the strong competitiveness of natural gas argues in favour of using that energy source instead of fuel oil, which helps to reduce greenhouse gas emissions by over 30%. Keep in mind that Québec is still, sadly, the Canadian champion of fuel oil consumption (Statistics Canada, 2009).

In the past two years, conversions by industrial customers from heating oil to natural gas have reduced greenhouse gas emissions by 495,000 tons of CO₂ equivalent.

Gaz Métro Overview
With over $3.6 billion in assets, Gaz Métro is Québec's leading natural gas distributor. Operating in this regulated industry for over 50 years, Gaz Métro has become the trusted energy provider to some 180,000 customers in Québec and 136,000 customers in Vermont while developing the skills and expertise needed to diversify beyond natural gas. Gaz Métro's prudent growth strategy has been marked by the successful entry into electricity distribution in Vermont and development of wind power projects in Québec.

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¹ Monthly price of the natural gas sold by Gaz Métro to its customers, including the derivatives that provide customers with a degree of price stability.
² Typical case of an average residential customer who consumes 1,416 m³ of natural gas for heating purposes (single-family dwelling of 1,700 ft² or 160 m², excluding electricity baseload, high energy efficiency appliances).
³ Typical case of an average business customer who consumes 41,500 m³ of natural gas (85% for heating, 15% for operations).

For further information:

Audrey Giguère
Media and public relations
514 598-3449
www.gazmetro.com/pressroom