A new Northeast natural gas price has emerged, pushing the region out of a $2-per-barrel hole.
The wholesale price for North Dakota’s Bakken and Texas’s Eagle Ford is $2.99 a pound, the highest in the region.
The average price in the Northeast is $3.06.
That’s lower than in other regions, but higher than the $1.75 in California, which is about the same as in the rest of the country.
North Dakota’s benchmark price is now $2 per million BTUs.
The wholesale price is $1,800 a million BTU.
The new price will apply to all natural gas and liquefied natural gas from North Dakota to Illinois.
The price of natural gas in the North Dakota Bakken is now at $2,200 a million, compared to $2 a million in 2015.
The price for natural gas is expected to fall further as production increases, and that would put North Dakota at a disadvantage compared to other states.
The North Dakota Department of Revenue said in a statement on Monday that the new price is based on a calculation that “favors the producers of North Dakota and other gas-producing regions in the Midwest with their own supply and demand for natural-gas.”
The department said the new wholesale price would be applied to all domestic natural gas, liquefying natural gas (LNG), and petroleum products (petroleum-derived fuels).
North Dakota has seen more than 10 million metric tons of natural-source natural gas produced in 2017, up by 10 percent from the previous year.
That means the state has a surplus of about 8,500,000 metric tons, according to the department.
In 2018, the state expects to have 2.4 million tons of LNG and about 1.2 million tons for petroleum products.