Canadian Natural Gas Advances on Warmer-Than-Normal U.S. Weather
Canadian natural gas rose as warmer-than-normal weather in the U.S. boosted demand for electricity to run air conditioners.
Alberta gas advanced 1.2 percent. Atlanta may have a high temperature tomorrow of 74 degrees Fahrenheit (23 Celsius), 7 above normal, according to AccuWeather Inc. Dallas’s high may be 84 degrees, 13 above normal, the State College, Pennsylvania- based forecaster said.
“There’s some cooling demand coming pretty soon with the heat,” said Eric Bickel, a natural gas analyst with Summit Energy Services in Louisville, Kentucky. “Demand for power is remaining robust and gas is at a good price for buyers.”
Alberta gas for April delivery rose 2.25 cents to $1.83 a gigajoule ($1.73 per million British thermal units) as of 11:50 a.m. New York time on NGX, a Canadian Internet market. NGX gas is down 0.6 percent this week.
Natural gas for April delivery on the New York Mercantile Exchange rose 4.6 cents to $2.315 per million Btu at 12:03 p.m.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.9 billion cubic feet, 61 million above target.
Gas was flowing at a daily rate of 1.79 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 2.2 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 1.04 billion cubic feet. The system was forecast to carry 1.61 billion cubic feet today, or 61 percent of its capacity of 2.65 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 3.13 billion cubic feet at 10:50 a.m.
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