January 22, 2013 / 3:27 PM / 5 years ago

Cold boosts New York spot gas to highest price this winter

NEW YORK, Jan 22 (Reuters) - Cold weather in the northeastern United States pushed regional New York natural gas prices early Tuesday to their highest price so far this winter.

If the early average of more than $22 per million British thermal units holds for the trading day, it will be the highest average price for regional New York gas prices tracked by Reuters since early January 2008.

Traders said cash gas for Wednesday delivery on the Transco pipeline at the New York citygate traded as high as $25 and as low as $9.75 early Tuesday.

The Williams Cos’ owned Transco pipeline is a 10,000-mile system with the capacity to carry 9.6 billion cubic feet of supply per day from South Texas to New York City. It is a major provider of natural gas to the northeastern and southeastern United States.

In an informational posting on Friday, the company said temperatures over much of the Transco market area would be below normal starting on Monday and continuing for most of the week. Shippers on the Transco system were encouraged to balance their supply and demand requirements on a daily basis.

The Weather Channel’s weather.com said temperatures in New York would reach a high of only 23 degrees Fahrenheit on Tuesday, dipping to the low-teens F overnight, with a similar forecast for much of the week.

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