Canadian Natural Gas Falls as Mild U.S. Weather Pares Demand
Canadian natural gas fell amid forecasts that mild U.S. weather will pare furnace use in the largest consuming regions for Canada’s gas exports.
Heating demand across the U.S. will trail normal by 12 percent for the next week, according to Weather Derivatives. Temperatures will be about 2 degrees Fahrenheit (1 Celsius) below normal through March 25, the Belton, Missouri-based forecaster said.
“We’re seeing warm weather lasting into next week,” said Bob Haas, a forecaster with MDA Federal’s EarthSat Energy Weather in Rockville, Maryland.
Alberta gas for April was little changed at C$3.5225 per gigajoule ($3.39 per million British thermal units) as of 12:13 p.m. New York time, according to NGX, a Canadian Internet market. Gas traded on the exchange is shipped to users in Canada and the U.S. Northeast, Midwest and West Coast and is priced on TransCanada’s Alberta system.
Natural gas for April delivery on the New York Mercantile Exchange fell 1.8 cents to $4.14 per million Btu.
Volume on TransCanada Corp.’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.3 billion cubic feet as of 10 a.m. in New York, about 28 million below target. Volume on the system, or linepack, rose 430 million cubic feet in the past 24 hours.
Gas was flowing at a daily rate of 3.69 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line.
At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the daily flow rate was 1.56 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 1.31 billion cubic feet. The system was forecast to carry 1.58 billion cubic feet today, about 54 percent of its capacity of 2.9 billion.
The volume on Spectra Energy’s British Columbia system, which gathers the fuel in northeastern British Columbia for delivery to Vancouver and the Pacific Northwest, totaled 2.83 billion cubic feet at 10:35 a.m.
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