Canada Natural Gains on Below-Normal U.S. Stockpile Increase

Canadian natural gas advanced after the U.S. Energy Department reported a smaller-than-normal gain in inventories of the fuel.

October gas in Alberta climbed 0.6 percent. The department’s weekly stockpile report showed supplies expanded by 67 billion cubic feet during the week ended Sept. 14 to 3.496 trillion, below the five-year average increase of 73 billion. A surplus to the average declined to 8.6 percent from 9 percent a week earlier.

“Injections have fallen short of the five-year average build in 23 of the past 24 weeks,” Mike Tran, an analyst at CIBC World Markets Corp. in New York, said in a note to clients today. “Although today’s injection was much more in line with the magnitude of the builds that we’ve seen historically for this time of year, it was still slightly lower than the seasonal average build.”

Alberta gas for October delivery rose 1.25 cents to C$2.2875 per gigajoule ($2.22 per million British thermal units) as of 3:20 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 October delivery on the New York Mercantile Exchange advanced 3.5 cents, or 1.3 percent, to settle at $2.797 per million Btu. The futures have fallen 6.4 percent this year.

Gas Volume

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 15.7 billion cubic feet at 1 p.m. New York time.

Gas was flowing at a daily rate of 1.9 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 2.23 billion cubic feet.

Available capacity on TransCanada’s British Columbia system at Kingsgate was 881 million cubic feet. The system was forecast to carry 1.7 billion cubic feet today. Estimated capacity was 2.58 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 2.71 billion cubic feet at 2:05 p.m.

To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net

To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.