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Message: LITTLE NOTE ON FUTURE ONTARIO NATURAL GAS COST

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LITTLE NOTE ON FUTURE ONTARIO NATURAL GAS COST

posted on Oct 31, 07 04:26AM

Natural gas prices rising sharply in Ontario

CBC News

Nearly two million Ontario consumers will see their natural gas bills rise by an average of $257 next year, Enbridge Gas Distribution said Friday.

The Ontario Energy Board has already approved the increase, effective Jan. 1.

The price of natural gas has been rising across North America since hurricane Katrina damaged energy production facilities in the Gulf of Mexico. That led to reduced supplies of gas, and fears of a shortage this winter.

"Our natural gas prices are based on North American natural gas market prices," said Lino Luison, vice-president of Enbridge Gas Distribution. "Market prices have increased due to a tight balance between gas supply and demand."

Weather has also had an impact. Natural gas prices shot up last week when a cold spell swept across the northeastern United States.

"Expectations for a cold winter in the key North American heating regions, coupled with the supply issues resulting from a severe hurricane season, are resulting in continued pressure on natural gas prices," he said.

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