Canada Natural Gas Climbs on Forecasts of Hot U.S. Weather
Canadian natural gas advanced on forecasts of hotter-than-normal weather that may spark greater power-plant use of the fuel.
August gas in Alberta climbed 1.2 percent as MDA EarthSat Weather in Gaithersburg, Maryland, predicted above-normal temperatures across most of the lower 48 states through Aug. 6. Cooling demand in the U.S. may be 6 percent above normal from July 29 through Aug. 2, according to Weather Derivatives in Belton, Missouri.
Alberta gas for August delivery gained 2.75 cents to C$2.3675 gigajoule ($2.20 per million British thermal units) as of 5 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.
Natural gas for August delivery on the New York Mercantile Exchange rose 3.6 cents to settle at $3.117 per million Btu, the highest close since Dec. 22.
The high temperature in Chicago on July 30 may be 87 degrees Fahrenheit (31 Celsius), 3 above normal, according AccuWeather Inc. in State College, Pennsylvania. New York’s high may be 8 above normal at 92 degrees on Aug. 2.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.3 billion cubic feet at 5 p.m. New York time.
Gas was flowing at a daily rate of 1.93 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 1.73 billion cubic feet.
The available capacity on TransCanada’s British Columbia system at Kingsgate was 639 million cubic feet. The system was forecast to carry 1.979 billion cubic feet today, or 76 percent of normal capacity of 2.62 billion.
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