Burner Tip Prices Overview

Natural gas burner tip prices attempt to account for the cost to procure and deliver gas to a natural gas-fired electric generator. Burner tip prices include both a commodity and a transportation component. The commodity component is the price of natural gas after production from the well and processing for injection into a nearby utility pipeline. The transportation component is the cost of transporting the gas from the injection point near the production basin to the electric generator for consumption. Energy planners and analysts working for regulators and utilities use the estimated burner tip prices for electricity resource planning, since fuel is a major portion of the overall cost to run natural gas-fired turbines.

Power Plant Burner Tip Price Forecast

The September 2021 Model in Microsoft Excel below estimates burner tip prices using monthly natural gas prices from the preliminary July 12, 2021, North American Market Gas-trade (NAMGas) Model Common Case forecasts from 2020 to 2030. Interstate transportation rates have been updated using the latest rate schedules in the pipeline operators’ filed tariffs. Intrastate transportation rates for Pacific Gas & Electric, Southern California Gas, and San Diego Gas & Electric have also been updated using a California transportation rates model.

View the 2014 Burner Tip Report and supporting documents, via Internet Archives Wayback Machine.

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