Arctic weather causes natural gas prices to heat up

|By:, SA News Editor

The freezing weather has caused spot prices for natural gas on the East Coast to soar to record highs, with gas at a trading hub in New Jersey surging to as high as $90 per million British thermal units yesterday from just $13.61/mmBtu on Friday. That compares with usual peaks of $40-50 when the temperatures get cold.

At two other hubs, prices hit $95/mmBtu.

Utilities are absorbing the costs at the moment, although they could pass the prices on to customers later in the year.

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