Canadian Natural Gas Declines as Mild U.S. Weather Pares Demand
Canadian natural gas fell as mild weather across the U.S. pared demand for heating fuels.
Alberta gas dropped 3.1 percent. U.S. demand for heat will trail normal by 11 percent through Feb. 28, according to Belton, Missouri-based Weather Derivatives. New York’s high tomorrow may be 56 degrees Fahrenheit (13 Celsius), 13 above normal, AccuWeather Inc. said.
“The forecasters are expecting above-normal temperatures, especially in the Northeast,” said Eric Bickel, a natural-gas analyst with Summit Energy Services Inc. in Louisville, Kentucky.
Alberta gas for March delivery declined 6.5 cents to C$2.065 a gigajoule ($1.97 per million British thermal units) at 11:10 a.m. New York time on NGX, a Canadian Internet market. NGX gas has dropped 28 percent this year.
Gas traded on the exchange is shipped to users in Canada and the U.S. and priced on TransCanada Corp.’s Alberta system.
Natural gas for March delivery on the New York Mercantile Exchange fell 8.1 cents, or 3 percent, to $2.603 per million Btu as of 11:12 a.m.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.8 billion cubic feet, 22 million above target.
Gas was flowing at a daily rate of 2.53 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 2.17 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 537 million cubic feet. The system was forecast to carry 1.91 billion cubic feet today, or 78 percent of its capacity of 2.44 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 2.98 billion cubic feet at 10:05 a.m.
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