Sometimes I see cheap gas for sale. Why doesnt the gas company buy this gas?
This most often is spot market gas offered for sale and immediate delivery by a supplier with extra gas to sell usually in summer when the demand is low. Utilities buy some of this gas when they can and this helps keep the overall cost of gas down. Unfortunately, spot market gas isnt typically available when the winter is cold and gas service is most critical. Then demand is high, spot prices are very high and spot gas often isnt available — at any price. When utilities buy gas, they have to make sure their supply provides reliable, long-term delivery of enough gas for the cold months when the need is the greatest and the market is the tightest. To be sure that the gas is delivered when it is needed most, utilities also have to pay pipelines for high priority transportation.
