LAS Natural Gas Program Price Change Notice
The new LAS price for the November 2023 - October 2024 period will be 13.6 cents/m3.
The LAS Natural Gas Program price was set at 14.1 ¢/m³ for the November 2022 - October 2023 contract year. With extreme weather conditions and volatile world events, program members in 2023 have been well protected against this unpredictable natural gas market.
LAS Program prices are slightly lower than current utility gas rates and LAS members are protected against any further upward movement in the market, but also benefit from the stability that an annual commodity rate offers.
For the Nov 23-Oct 24 contract year, LAS has also secured 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’ multi-year approach, our total on-bill rate compares very favorably with market costs going into 2024.
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 and has already purchased 58% of member requirements for the Nov 24-Oct 25 program year, as well as 24% of member requirements for the Nov 25-Oct 26 program year. We are also looking at making initial purchases into the Nov 26-Oct 27 period. Changes to forecasts in weather, world events, and supply and demand can cause big changes to market pricing, so a multi-year strategy is a benefit to Program members.
LAS always leaves a portion of the total annual program volume to settle at spot market rates, which allows members to benefit from often competitive spot market prices. Any new enrollment requests for the 2023/2024 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 291,500 m3
- $2.25 million in member rebates since 2020.
If your organization would like to enroll any additional accounts in the program, please forward a recent bill copy by email to flazzaro@amo.on.ca.