Florida Natural Gas Procurement
Growing demand at the end of long pipeline hauls
The Florida Natural Gas Market
Florida's natural gas market is driven by massive power generation demand—the state generates over 70% of its electricity from gas. Located far from production basins, Florida depends on long-haul pipelines and faces different dynamics than northern markets.
Key Pricing Point(s)
FGT Zone 3, Florida Citygate
Basis pricing relative to Henry Hub benchmark
Key Market Concepts
Understanding these terms is essential for navigating Florida's natural gas market:
The primary pipeline serving Florida, running from the Gulf Coast into the peninsula. FGT basis reflects transportation distance from Gulf production.
An offshore pipeline connecting Gulf of Mexico production to Florida, providing supply diversity and capacity.
Florida's massive gas-fired power generation fleet drives demand, making gas prices closely tied to electricity demand and prices.
Gulf of Mexico storms can disrupt production and pipeline operations, creating supply risk during hurricane season.
What Makes Florida Unique
Power Sector Dominance
Power generation is the primary demand driver, making gas prices sensitive to electricity demand and air conditioning load.
Long Haul Transportation
Florida receives gas from Gulf Coast and offshore, requiring significant transportation that adds to cost.
Limited Storage
Florida has minimal gas storage, making it dependent on pipeline deliveries to meet demand variations.
Hurricane Exposure
Gulf storms can disrupt supply, creating periodic price spikes during hurricane season.
Key Considerations for Florida Buyers
- Summer demand (power gen for AC) creates summer price pressure
- Hurricane hedging is a unique consideration for Florida buyers
- Limited storage means pipeline reliability is critical
- Power sector gas economics affect commercial rates indirectly
- Growing LNG export demand affecting Gulf Coast basis
Pipeline Infrastructure
Florida receives natural gas through the following major pipelines:
Major Gas Utilities in Florida
Seasonal Factors
Summer AC demand drives power sector gas use; hurricane risk Aug-Nov.
Why Choose Eisenbach for FL Gas?
- Licensed and in good standing
- Deep supplier relationships
- Hedging expertise for basis risk
- Custom procurement strategies
Ready to Optimize Your FL Gas Costs?
Our team understands Florida's market dynamics. Let's discuss your specific situation.
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