Canadian natural gas rose as forecasters tempered heat forecasts for the U.S. Midwest and Northeast prior to tomorrow’s report on inventory levels.
July gas in Alberta advanced 0.6 percent after MDA EarthSat Weather in Gaithersburg, Maryland, said slightly lower temperatures than previously forecast will move more quickly than expected across the northern U.S. from June 18 to June 22.
“We are looking at a cooler outlook, weather-wise, for much of the U.S. for the next week or two,” Eric Bickel, an analyst at Summit Energy Services in Louisville, Kentucky, said by telephone. “We’ll continue to see builds in injections and until we see a material increase in that heat, we could see prices remain at this $2.20-level just because supply is so strong right now.”
Alberta gas for July delivery gained 1 cent to C$1.705 a gigajoule ($1.58 per million British thermal units) as of 1:25 p.m. New York time. Gas traded on the exchange is shipped to users in Canada and the U.S. and priced on TransCanada Corp. (TRP)’s Alberta system. NGX gas is down 35 percent this year.
Natural gas for July delivery on the New York Mercantile Exchange slid 3 cents to $2.202 per million Btu.
“The market is going to be very range-bound between this level and maybe a little lower,” Kyle Cooper, director of research with IAF Advisors in Houston, said in a telephone interview. “Until we get a more definitive look at what the summer is going to look like in terms of the heat in July and August, that remains the trading for the balance of June.”
The high in Toledo, Ohio, on June 18 is forecast to be 91 degrees Fahrenheit, 9 degrees above normal, before easing to 75 degrees on June 22, 8 below normal, according to AccuWeather Inc. in State College, Pennsylvania.
Gas was flowing at a daily rate of 2.03 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 billion cubic feet.
The available capacity on TransCanada’s British Columbia system at Kingsgate was 516 million cubic feet. The system was forecast to carry 2.03 billion cubic feet today, or 80 percent of normal capacity of 2.55 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 2.78 billion cubic feet at 12:20 p.m.
To contact the reporter on this story: Colin McClelland in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com