Press Releases and Statements

FOR IMMEDIATE RELEASE

CONTACT:

Dave Schryver, President

Phone: (202) 464-2742

Email: dschryver@apga.org

APGA Calls for Investigation of Historic NYMEX Natural Gas Futures Price Spikes

Washington, D.C. (February 2, 2022) – The American Public Gas Association (APGA), representing more than 700 municipally owned natural gas systems in 38 states, issued the following statement in response to the historic price spike in natural gas futures prices on the New York Mercantile Exchange (NYMEX) last week:

“APGA is very concerned about the impact of the historic price spike in NYMEX futures on January 27 — the largest one-day gain since the 1990s. This market activity results directly in higher natural gas prices for residential consumers, who should not be forced to pay 50% more for heating their homes in February because of a price squeeze on NYMEX.

When price spikes happen, like they did last week and during Winter Storm Uri in 2021, not-for-profit public gas systems like APGA’s members have no choice but to purchase the high-priced natural gas to keep the heat on in their communities — which is why APGA sent two important letters earlier today urging further examination of the price squeeze:

1. Commodity Futures Trading Commission (CFTC): Asking for an investigation into the trading activity that led to the record-high closing price for the natural gas contract for February 2022. Within the letter, we urged the CFTC to examine whether any market participants engaged in market manipulation or other violations. Read
2. CME Group, derivatives marketplace that houses NYMEX: Requesting a full public accounting of recent market activity. APGA believes this additional transparency will shed light on the trading activity that led to such large short-term price increases. Read

APGA and its members are committed to ensuring natural gas remains an affordable energy choice for American consumers. We believe these inquiries will help determine whether market reforms should be undertaken to protect public gas systems — and the communities who rely on them to heat their homes — from future price spikes.”