Natural Gas Procurement
CTThe Constitution State

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:

Algonquin Basis

Connecticut pricing follows Algonquin system basis, which can spike dramatically during winter cold when heating and power generation demand compete.

Supplier Choice

Connecticut allows commercial and industrial customers to choose their gas supplier while using utility delivery service.

Winter Price Risk

The potential for extreme prices during cold weather events. Connecticut has experienced basis spikes exceeding $20/MMBtu above Henry Hub.

Firm vs Interruptible

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

1

New England Constraints

Connecticut faces the same pipeline limitations as Massachusetts and Rhode Island.

2

Winter Volatility

Basis spikes during cold weather can add substantial cost for unhedged buyers.

3

Electric-Gas Coupling

Gas-fired power plants compete with heating load for pipeline capacity, exacerbating winter price pressure.

4

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:

Algonquin Gas Transmission
Tennessee Gas Pipeline
Iroquois Gas Transmission

Major Gas Utilities in Connecticut

Eversource (Southern CT)
Avangrid (Southern Connecticut Gas, Connecticut Natural Gas)

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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