February 2021 Pricing Alert

February 2021 was a particularly volatile month for natural gas prices. Historic levels of cold concentrated in the heavy natural gas production areas of Texas and Oklahoma caused significantly higher demand of natural gas for heating and electricity production. At the same time, the unusually severe cold resulted in many gas wells and pipelines freezing off, prohibiting any production or transmission of natural gas to end users. Additionally, significant parts of Texas’ electric grid went offline and caused most gas compressor stations and other systems vital for gas distribution to go offline as well. The result was historic levels of demand and significantly lower volumes of natural gas making it into the market, resulting in historically high prices. These higher prices effected the areas with extreme cold and those effects cascaded into the surrounding areas throughout the country. Tiger was active in the market during this time and unfortunately had to purchase gas for our customers’ accounts at historically high prices. As such, you can expect your February 2021 invoices to be historically high. This event has ceased, and we do not expect continuing effects related to this event.