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Kansas grain industry braces for natural gas price spike

Advisory warns of potential price increases reminiscent of 2021 Winter Storm Uri event.

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Pixabay

Kansas Grain and Feed Association (KGFA) has issued an important advisory to its members, warning of a potential spike in natural gas prices during the upcoming holiday weekend. The alert draws parallels to the dramatic price surge experienced during Winter Storm Uri in February 2021, which also occurred over a four-day holiday period.

Key points from the advisory include:

  1. On the Panhandle Eastern pipeline system, a gas trade for the four-day weekend was reported at $17.20 per MMBtu.

  2. The Southern Star pipeline system saw bids around $10 and offers in the low $30 range, though no transactions were completed at these levels.

  3. While hoping for restraint, the advisory suggests members should plan for increased natural gas prices, potentially reaching $20 - $30 per unit or higher.

This situation underscores the volatility of energy markets and its potential impact on the grain handling and processing industry. KGFA members are advised to closely monitor the situation and prepare for possible cost increases in their operations over the holiday weekend.

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