Natural gas prices are on the rise across the country. In this article, we’ll review why natural gas prices are high right now (2022), how that impacts your natural gas rate for your home, and how to get the best natural gas in Ohio or Georgia.
Why Natural Gas Prices Are So High Right Now?
We’ll come right to it. Natural gas markets are crazy right now.
First a primer on natural gas and how it’s bought and sold. Wholesale natural gas prices are commonly measured in the US in MMbtu. And the Henry Hub, located in Louisiana, just onshore from major drilling rigs, is the primary trading point for natural gas in the US.
Natural gas suppliers and utility companies purchase natural gas in the form of wholesale contracts. And the wholesale trading price for natural gas in the US is the NYMEX Henry Hub.
Here’s what a 12 month contract looks like for NYMEX Henry Hub natural gas wholesale markets. See that nearly vertical line on the right?
That shows that (1) natural gas rates are climbing rapidly and (2) prices are higher than they have been in 10 years.
During normal economic times, natural phenomenon (heat, cold, hurricanes) and supply and demand drive the market. But right now, markets are being driven by the geopolitical issues – namely Russia’s invasion of Ukraine.
Domestic natural gas is no longer limited to traveling on pipelines and delivery points across the USA. Liquified Natural Gas (LNG) can be shipped anywhere in the world.
Western European countries are looking to move away from Russia – the largest producer of natural gas in the world — and are looking for new suppliers. LNG fits that perfectly. That means the new global market for natural gas is here to stay, along with higher natural gas prices.
So now that you understand what’s going on, what do you do?
How to Get the Best Natural Gas Rates in Georgia Right Now
As an Atlanta Gas Light customer, you must choose a natural gas supplier. That puts you in a tight spot. With natural gas prices at historic levels, how do you find the best natural gas rates in Georgia? You can try to put it off by delaying your shopping. But based on the factors outlined above, prices may get worse before they get better.
Here are our tips to get the best natural gas rates in Atlanta, Augusta and across Georgia:
- Stay on top of your expiration date to remember to shop.
- Don’t take the renewal offer without shopping your options. Typically, you get a higher rate when you are renewing then when you are a new customer. Switching to a new gas provider may get you a better rate.
- Review the early termination penalty on your new contract. Look for the plan with the lowest fee if you switch away. That way you can easily switch to a new company if rates drop.
- Look at longer term natural gas rates. You may be able to get a better deal on a long term plan.
Shop GA natural gas rates online to find the best prices.
How to Get the Best Natural Gas Rates in Ohio Right Now
Ohio is a deregulated natural gas market where you don’t have to choose a supplier. You can stay with your local utility for your gas supply. But the utility rates you’ll pay in the future will reflect the realities of the global natural gas market. And your rates change every 3-6 months.
Depending on what area you live in, you may be able to lock in a fixed rate natural gas plan that can beat the utility rate. And, a fixed rate natural gas plan lets you budget for your home.
Here are our tips to get the best natural gas rates in Ohio:
- Look for a natural gas plan with no early termination penalty, like Energy Harbor or Direct Energy. That way you can easily switch to a new company if rates drop.
- Look for what we call term optimized plans. Direct Energy usually looks for the best pricing opportunities in the market. They may offer a 34 month plan when everyone else offers 36 months, or a 16 month plan when others offer 18 month plans.
- Stay on top of your expiration date to remember to shop.
- Don’t take the renewal offer without shopping your options. Typically, you get a higher rate when you are renewing then when you are a new customer. Switching to a new gas provider may get you a better rate.
TIP: When we have rates that are lower than the current utility rate, you will always see the utility rate at the top of our rates page.
Shop Ohio natural gas rates online to find the best prices.
