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DIVISION OF ENERGY

Natural Gas Contract


In 2005, after Hurricanes Katrina and Rita, gas spiked to over $15 per MMBtu and remained over $10 for almost 2 quarters.  It was during this time that all sixteen State Agencies using large quantities of Natural Gas saw their budgets over spent.  These Agencies had to appeal to the Legislature for additional funding.  The Legislature acted to minimize the impact of future occurrences by directing the Department of Mines, Minerals and Energy, Division of Energy to be responsible for purchasing all Natural Gas required for these Agencies. The Division of Energy, with the help of the Department of Purchases and Supply, put in place a contract with a Natural Gas wholesaler.  The goal is to buy Natural Gas at a guaranteed price for at least a one year period and give these Agencies budget certainty that would eliminate spikes in the cost of Natural Gas. This goal has been achieved and has resulted in cost savings to these Agencies. The first year alone was estimated to save more than one million dollars.

The natural gas contract was written to allow other Public Bodies and Universities access to this Contract at their discretion

Contract Administrator/Technical Support
Lead – Nam Nguyen
Email – Nam.Nguyen@dmme.virginia.gov
Phone 804-692-3230

Backup – Eileen Carson
Email – Eileen.Carson@dmme.virginia.gov
Phone 804-692-0007