LAS Natural Gas Program Price Change Notice
The LAS price for the November 2022 - October 2023 period will be 14.1 cents/m3.
The LAS Natural Gas Program price is currently set at 14.1 ¢/m³ for the Nov 22-Oct 23 contract year. With the extreme volatility and upward pressure on natural gas prices experienced through most of 2022 and expected through 2023, program members have been well protected against this unpredictable market.
Program prices are approximately half of the current utility and forward natural gas market rates. LAS members will not only be protected against further upward movement in the market, but will benefit from significant savings against being fully exposed to spot market conditions.
For the Nov 22-Oct 23 contract year, LAS has also secured 100% of its deregulated transportation obligations. Based on the transactions completed and the forward outlook for transportation, members can expect to see a small year over year increase in transportation rates, but given LAS’s multi-year approach, still compare very favorably to current market costs of transportation into 2023.
Looking ahead:
LAS' strategy for natural gas continues to be established with a view towards annual cost predictability. To ensure this, the LAS Program operates within a four-year purchasing window. LAS has competitive targets in place for future years and has already purchased 65% of member requirements for the November 2023 program year, as well as 55% of member requirements for the November 2024 program year.
LAS always leaves a portion of the total annual program volume to settle at spot market rates, which allows members to benefit from largely competitive spot market prices. New enrollment requests for the 2022/2023 term will be assessed for natural gas volume, and whether the usage can be accommodated within current program volume.
Program Facts:
- 160+ participating organizations
- Daily program volume of 289,600 m3
- $2.25 million in member rebates over past three program years