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.
Updated
June 16, 2016
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Alberta Official Statistic Visualization
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Title and Dataset Information
Date Modified
2016-06-16
Update Frequency
Monthly
Publisher / Creator Information
Creator
Publisher
Energy
Subject Information
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
Audience information
Language
Identifiers
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
Contact Other
(780) 427-2071