Learn about natural gas services in New Jersey.

How do you get natural gas in New Jersey?

New Jersey is a state that does not produce any of its natural gas, nor does it have any reserves. In fact, all of the natural gas used in the state of New Jersey comes from Pennsylvania. Half of the incoming supply from Pennsylvania is used for the residents of New Jersey, while the remaining supply is sent onward to New York and other New England states. All of the natural gas coming into New Jersey comes from Pennsylvania's Marcellus Shale natural gas field, located in northeastern Pennsylvania. In New Jersey, the residential sector accounts for approximately 34% of the state's total natural gas consumption annually1.

New Jersey is a deregulated energy market. Meaning, if you own a home or business in the state of New Jersey, you are entitled to shop around for natural gas providers that offer rates, contract terms and that possess the quality of customer service that works best for you. New Jersey grants residents the ability to choose their natural gas supplier, then delivered by the public utility. The public utility is responsible for providing natural gas to your home or business through the pipelines and infrastructure that it owns, and you will still be charged a fee each month for that service.

Can I choose my natural gas provider in New Jersey?

Since New Jersey became a deregulated natural gas state in 1997, the residents of New Jersey are entitled to choose their natural gas supplier. Natural gas is a large part of New Jersey's energy market. It not only provides heat and other essentials to homes and businesses in New Jersey but it also provides over 90% of the state's electricity2.

What are the different natural gas companies in New Jersey?

There are four main natural gas public utilities that service the homes and businesses of New Jersey. They are Elizabethtown Gas, New Jersey Natural Gas, PSE&G, and South Jersey Gas. Depending on which natural gas utility services your area, several suppliers are available through that public utility3.

What is the average natural gas bill in New Jersey?

In mid-2021, the average natural gas bill for a residence in New Jersey using 100 therms was around $133.40. However, even as natural gas prices continue to climb through 2021, there is proposed legislation that could have the residents of New Jersey paying a rate increase of nearly 25%. If that increase went into effect immediately, the average natural gas bill in New Jersey would be around $141.17. The 25% increase would pay for continued improvements and turn on the new 30-mile natural gas transmission pipeline that runs from Chesterfield to Manchester, serving more than 80 towns. The rate hike would mainly affect residents who have New Jersey Natural Gas as their public utility. However, since so many residents have New Jersey Natural Gas as their utility, there will be an overall increase to the average natural gas bill across the state4.

Are natural gas prices increasing in New Jersey?

Natural gas prices have drastically increased over 2021. The natural gas price increase that many people are experiencing in New Jersey is not a state specific problem, as markets across the nation are experiencing price hikes. In december of 2020, natural gas for residential use was $9.41 per therm. In mid-2021, that price had surged to $13.40 per therm. In a six-month span, the cost of natural gas had risen by 42%, from December 2020 to mid-2021. This demonstrates an undeniable trend that natural gas prices are increasing in New Jersey and the U.S.5.

Are natural gas prices different across the state of New Jersey?

Like any other state, natural gas prices will vary from county to county and city to city. This is why the average natural gas price is calculated by taking various rates across the entire state. In New Jersey, the average cost of natural gas for residential use throughout 2020 was $9.92 per therm. This average is not only calculated by finding the average price of natural gas by geographic location. It's found by calculating the average throughout the year considering seasonal fluctuations. Compare that to the average price for residential use in mid-2021, and you will see an increase to a total of $13.40 per therm. That demonstrates a 35% increase over the course of 18 months, between the average 2020 price and price last reported in mid-20216.

Is natural gas more expensive in New Jersey?

Although the citizens of New Jersey may be alarmed by the natural gas rate increases they have been experiencing in 2021, they are faring quite well compared to the national average price of natural gas. As previously mentioned, the average residential price for natural gas in New Jersey was $13.40 per therm in mid-2021. At that time, the national average for residential natural gas was $19.94 per therm. When comparing these two figures for the price of natural gas, the average resident in New Jersey is paying almost one-third less than the national average7.

What is a good price for natural gas in New Jersey?

A reasonable price for natural gas in New Jersey is any price at or below the average price. Since the average price in mid-2021 was $13.40 per therm, any price at $13.40 or lower may be considered a reasonable price for natural gas in New Jersey.

Is there a state mandate in New Jersey for renewable energy?

New Jersey has mandated that 35% of the energy sold comes from qualifying clean energy sources by the year 2025. The same mandate dictates that by 2030, 50% of the fuel sold in the state must come from clean energy sources. Both of these mandates were part of the Clean Energy Act signed into law by Governor Murphy in 2018. The 35% by 2025 and the 50% by 2030 mandates were part of the renewable energy portfolio standard, which was detailed in the bill8.

Other sections of the Clean Energy Act specifically address New Jersey's solar and offshore wind ambitions. For example, the bill mandates that New Jersey's offshore wind industry increase its capacity to a minimum of 3,500 megawatts by 2030. The bill also reinstated tax credits for the offshore wind manufacturing activities that had previously expired.

The offshore wind industry combined with the expansion of the solar industry in New Jersey is a significant contributor to the mandates outlined in the Clean Energy Act of 2018.

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  1. eia.gov/state/analysis.php?sid=NJ 

  2. quickelectricity.com/resources/deregulated-energy-states 

  3. nj.gov/bpu/commercial/shopping.html 

  4. app.com/story/money/business/consumer/2021/03/31/new-jersey-natural-gas-rates-pipeline-southern-reliability-link/4805790001 

  5. ycharts.com/indicators/njnaturalgasresidential_price 

  6. eia.gov/dnav/ng/NGPRISUMDCUSNJ_A.htm 

  7. eia.gov/dnav/ng/ngprisumdcunus_m.htm 

  8. nj.gov/dep/aqes/opea-clean-energy.html