Canada Natural Gas Drops on Mild Weather Forecast for U.S. East

Canadian natural gas fell as mild weather was forecast across the eastern U.S., reducing demand for the fuel.

Alberta gas declined 2.3 percent as the low temperature in Philadelphia on April 16 was predicted to be 60 degrees Fahrenheit (16 degrees Celsius), 16 above normal, according to AccuWeather Inc. in State College, Pennsylvania.

Alberta gas for May delivery dropped 3.75 cents to C$1.615 a gigajoule ($1.52 per million British thermal units) as of 6 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.’s Alberta system.

Natural gas for May delivery on the New York Mercantile Exchange fell 7.6 cents to settle at $2.031 per million Btu.

Spot gas at the Alliance delivery point near Chicago declined 8.98 cents, or 4.3 percent, to $2.0016 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.

Temperatures from the Mississippi River to the East Coast will be normal or above normal from April 15 through April 24, according to MDA EarthSat Weather in Gaithersburg, Maryland.

Spot Prices

At the Kingsgate point on the border of Idaho and British Columbia, gas slid 4.26 cents, or 2.2 percent, to $1.9101 per million Btu. At Malin, Oregon, where Canadian gas is traded for California markets, prices dropped 3.87 cents, or 1.9 percent, to $1.9715.

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 15.8 billion cubic feet.

Gas was flowing at a daily rate of 2.15 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line, at 5 p.m. New York time.

At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the daily flow rate was 2.18 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.

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