Canada Natural Gas Rises as Warmer Weather Forecast in U.S.

Canadian natural gas rose as above- normal temperatures were predicted for the U.S. West and South into next month, increasing the likelihood of demand for the power-plant fuel to help run air conditioners.

July gas in Alberta advanced 7.7 percent after MDA Information Systems Inc., of Gaithersburg, Maryland, predicted temperatures 3 degrees Fahrenheit (2 Celsius) to 14 degrees warmer than usual in the Rockies and southern U.S. from June 23 to July 2.

“The core of the heat here will be focused over the Rockies, where several days of ‘much-aboves’ appear likely,” Eric Wertz, a meteorologist at MDA, wrote in a note to clients today. “Some of this warmth will likely extend southeastward across the Plains and into the Southeast.”

Alberta gas for July delivery gained 14.5 cents to C$2.035 a gigajoule ($1.88 per million British thermal units) as of 4:35 p.m. New York time on NGX, a Canadian internet market. 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 23 percent this year.

Natural gas for July delivery on the New York Mercantile Exchange gained 16.8 cents to settle at $2.635 per million Btu.

The high for Denver on June 23 will be 97 degrees Fahrenheit, 12 above normal, said Accuweather.com of State College, Pennsylvania. Temperatures in parts of Virginia and North Carolina may be above 90 from June 20 through the first of July.

Spot Prices

Spot gas at the Alliance delivery point near Chicago rose 8.34 cents, or 3.4 percent, to $2.5338 per million Btu on the Intercontinental Exchange. Alliance is an express line that can carry 1.5 billion cubic feet a day from western Canada.

At the Kingsgate point on the border of Idaho and British Columbia, gas advanced 6.67 cents, or 3.1 percent, to $2.2148 per million Btu. At Malin, Oregon, where Canadian gas is traded for California markets, prices gained 2.91 cents, or 1.3 percent, to $2.3226.

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.4 billion cubic feet at 4:30 p.m. New York time.

Gas was flowing at a daily rate of 2.3 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 1.97 billion cubic feet.

The available capacity on TransCanada’s British Columbia system at Kingsgate was 692 million cubic feet. The system was forecast to carry 1.86 billion cubic feet today, or 73 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 3.01 billion cubic feet at 3:35 p.m.

To contact the reporter on this story: Colin McClelland in Toronto at cmcclelland1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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