Canadian Natural Gas Advances After U.S. Revises Storage Data

Canadian natural gas rose after the U.S. Energy Department revised its estimate of gas in storage, cutting its official stockpile number by 11 billion cubic feet.

Alberta gas advanced 0.3 percent. U.S. inventories gained 47 billion cubic feet to 2.548 trillion in the week ended April 20, the Energy Department said today. An increase of 45 billion was expected, according to analyst estimates compiled by Bloomberg. The department revised the total reported last week.

“The bottom line is that it lowered stocks by 11 billion cubic feet,” said Kyle Cooper, director of research with IAF Advisors in Houston.

Alberta gas for May delivery rose 0.5 cent to C$1.58 a gigajoule ($1.53 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.’s Alberta system. NGX gas is down 45 percent this year.

Natural gas for May delivery on the New York Mercantile Exchange fell 3.2 cents to settle at $2.036 per million Btu.

Spot gas at the Alliance delivery point near Chicago gained 9.68 cents, or 4.6 percent, to $2.2191 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.

Spot Prices

At the Kingsgate point on the border of Idaho and British Columbia, gas fell 10.17 cents, or 5.5 percent, to $1.9354 per million Btu. At Malin, Oregon, where Canadian gas is traded for California markets, prices gained 9.13 cents, or 4.8 percent, to $2.0085.

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.4 billion cubic feet, 345 million below target.

Gas was flowing at a daily rate of 2.21 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 1.89 billion cubic feet.

Available capacity on TransCanada’s British Columbia system at Kingsgate was 980 million cubic feet. The system was forecast to carry 1.67 billion cubic feet today, or 63 percent of its capacity of 2.65 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 3.04 billion cubic feet at 2:05 p.m.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE