HomeMy WebLinkAbout05.a.1) Semi-annual report on status and pricing of natural gas purchases.Natural Gas Purchase Update
Board of Directors Meeting
Craig Mizutani
Senior Engineer
August 14, 2014
Central Contra Costa Sanitary District
Current Purchasing Authorization
• Natural gas is the largest 0 &M Budget line item
- FY 2014-2015 = $2.4 M
• District pre - purchases natural gas from Shell Energy
• General Manager is authorized to pre - purchase
natural gas
- Two years in advance (currently through December 2016)
- $6 per MMBtu limit
• This approach has worked well - Allows staff to react
to market with checks and balances
8/7/2014
5a. I )
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2015 Calendar Year Natural Gas
Purchases
• All of natural gas pre - purchased at average of
$4.84 per MMBtu
- 1,000 MMBtu per day pre - purchased
- 1,200 MMBtu per day expected use
• Remaining 200 MMBtu will be purchased at "Spot
Market" price
• Target price to meet FY 2014 -2015 Budget is
$4.80 per MMBtu
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Current Natural Gas Price
• Effect of "Polar Vortex"
- Day prices remained slightly elevated due to high prices
in Winter
- Cooler summer weather - Price drop
• Current Prices Stabilizing
- $4.65 for 2015
- $4.75 for 2016
- $5.00 for spot market
• For remainder of 2014, the District will be purchasing
1/3 of its natural gas on the spot market
8/7/2014
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Historical Prices
Average Shell Energy Natural Gas Price
$10.00
$9.00
$9.00
$ 7.00
$6.00
$5.00
$4.00
$3.00
$ 2.00
$100
$0.00
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Summary Natural Gas Purchases
• All pre - purchases Calendar 2015 natural gas has
been purchased - Average price $4.84 per MMBtu
• Target price to meet FY 2014 -2015 Budget is
$4.80 per MMBtu
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8/7/2014
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