Open Data

Natural Gas Reference Price, Alberta

Description

This Alberta Official Statistic describes the Alberta Natural Gas Reference Price as an average Alberta gas plant price calculated using the purchase prices at the Alberta Market Hub on the Natural Gas Exchange (NGX). This price is used in the calculation of royalties. The Natural Gas Reference Price has been the primary source of valuing Alberta Crown gas royalties since January 1994. In October 2002, the Gas Reference Price was replaced by In-Stream Component (ISC) Reference Prices as the primary method of valuing the Crown’s share of natural gas. The Gas Reference Price is still used to calculate the ISC Reference Prices and as a default royalty value.

Tags
AOS Alberta Natural Gas Prices Alberta Official Statistics

Title and Dataset Information

Alternative Title

None

Date Modified

2016-06-16

Update Frequency

Monthly

Publisher / Creator Information

Creator
Energy
Publisher

Energy

Subject Information

Start Date

2007-01-01

End Date

2016-04-30

Spatial Coverage

Alberta

Resource Dates

Date Created

2016-06-16

Date Added to catalogue

2015-07-17T21:23:35.590356

Date Issued

2015-05-11

Date Modified

2016-06-16

Date Archived

N/A

Audience information

Identifiers

External Identifier

N/A

Usage / Licence

Usage Considerations

As of January 2011, the Alberta Natural Gas Reference Price is calculated using purchase prices at the Alberta Market Hub on the Natural Gas Exchange (NGX). The Crown Royalty regime for natural gas is price sensitive. The Crown achieves price sensitivity using a base rate and a higher marginal rate as components of the royalty formula used to determine the Crown’s royalty share of natural gas. In the royalty formula, the select price is the price threshold above which the higher marginal royalty rate applies. A separate select price is prescribed for each of old gas, new gas, and pentanes. To account for inflation, the department adjusts the select price each year based on the GDP Implicit Price Index. The department calculates the select price by multiplying the previous year’s select price by the inflation factor. This price is published in the annual March edition of the Gas Royalty Calculation Information Bulletin. The government, the utility companies and the regulators do not have any control over natural gas prices, which have tended to follow the North American wholesale market since 1985. Natural gas can be measured in a variety of ways, although the most common unit of measurement is the gigajoule (GJ), which signifies one billion joules, the metric measure for heat or energy.

Contact

Contact Name

Office of Statistics and Information

Contact Email

osi.support@gov.ab.ca

Contact Other

(780) 427-2071