Connecticut Natural Gas Procurement
New England constraints with Northeast premium pricing
Also available: Electricity Procurement in Connecticut
The Connecticut Natural Gas Market
Connecticut shares New England's natural gas infrastructure challenges—limited pipeline capacity, winter price volatility, and dependence on LNG during peak demand. Large gas users must plan carefully to manage winter cost exposure.
Key Pricing Point(s)
Algonquin Citygate, Tennessee Zone 6
Basis pricing relative to Henry Hub benchmark
Key Market Concepts
Understanding these terms is essential for navigating Connecticut's natural gas market:
Connecticut pricing follows Algonquin system basis, which can spike dramatically during winter cold when heating and power generation demand compete.
Connecticut allows commercial and industrial customers to choose their gas supplier while using utility delivery service.
The potential for extreme prices during cold weather events. Connecticut has experienced basis spikes exceeding $20/MMBtu above Henry Hub.
The distinction between guaranteed delivery service (firm) and service that can be curtailed during peak periods (interruptible). Interruptible customers accept curtailment risk for lower rates.
What Makes Connecticut Unique
New England Constraints
Connecticut faces the same pipeline limitations as Massachusetts and Rhode Island.
Winter Volatility
Basis spikes during cold weather can add substantial cost for unhedged buyers.
Electric-Gas Coupling
Gas-fired power plants compete with heating load for pipeline capacity, exacerbating winter price pressure.
High Retail Rates
Connecticut gas rates are among the highest in the nation, making procurement optimization valuable.
Key Considerations for Connecticut Buyers
- Winter hedging is essential for budget certainty
- Dual-fuel capability provides valuable optionality
- Consider storage-based strategies to manage winter exposure
- Firm transportation capacity is valuable during constraints
- Power sector dynamics affect gas pricing significantly
Pipeline Infrastructure
Connecticut receives natural gas through the following major pipelines:
Major Gas Utilities in Connecticut
Seasonal Factors
Extreme winter price risk; moderate summer.
Why Choose Eisenbach for CT Gas?
- Licensed and in good standing
- Deep supplier relationships
- Hedging expertise for basis risk
- Custom procurement strategies
Ready to Optimize Your CT Gas Costs?
Our team understands Connecticut's market dynamics. Let's discuss your specific situation.
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