Gas reference prices
Last updated on June 26, 2024The gas reference price is the price per 1000 cubic metres used to calculate the gross royalty amount for marketable gas and to determine gas royalty rates. The gas reference price is the greater of the producer price and the posted minimum price.
Producer price
The producer price is the average monthly sales price for each producer at the inlet of each processing plant where they have production. The producer price is determined by the Ministry of Energy, Mines and Low Carbon Innovation using information provided by producers each month.
Actual processing and transportation charges for each processing plant are deducted from the average sales value. For producer-owned plants, these charges are deducted using a gas cost allowance.
Posted minimum price
The province establishes a posted minimum price (PMP) based on current market prices to ensure natural gas resources are not discounted. The PMP is 80 percent of the estimated average sales price for gas produced each month in a specific area.
The PMP varies by designated plant groups to consider the wide range of costs that can exist between plants and the differing prices between markets. There are five plant groups:
- Fort Nelson
- McMahon
- Pine River
- Plants Delivering Gas to the Spectra Transportation System
- Plants Delivering Gas to TransCanada & Alliance Transportation Systems
See a complete list of plants on the PMP Plant Group List (PDF, 80KB) and the current posted minimum price for each plant group.​
Each month, producers must submit natural gas sales and cost of service information to the Ministry of Energy, Mines and Low Carbon Innovation.
The Natural Gas Pricing Order (PDF, 170KB) outlines the information required and relevant pricing methodology.
Contact information
Find out who to contact for your questions about oil and natural gas in B.C.