Aug. 7 (Bloomberg) -- Canadian natural gas climbed on forecasts of above-normal temperatures in the U.S. that may increase power-plant demand and limit inventory gains.
September gas in Alberta advanced 3.4 percent as MDA EarthSat Weather in Gaithersburg, Maryland, predicted hotter-than-normal weather in the central and eastern U.S. from Aug. 17 to Aug. 21. The high in New York on Aug. 18 may be 85 degrees Fahrenheit (29 Celsius), 2 higher than the usual reading, according to AccuWeather Inc. in State College, Pennsylvania.
“We still see enough demand to limit storage injections to somewhat below the five-year average rate, maintaining some underlying fundamental support for prices,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said in a note to clients today.
Alberta gas for September delivery rose 7.25 cents to C$2.2375 per gigajoule ($2.13 per million British thermal units) as of 4:05 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 September delivery on the New York Mercantile Exchange gained 5.6 cents, or 1.9 percent, to settle at $2.964 per million Btu. The futures have declined 0.8 percent this year.
Electricity producers account for about 36 percent of U.S. gas consumption, Energy Department data show.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 15.8 billion cubic feet at 3 p.m. New York time.
Gas was flowing at a daily rate of 1.95 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 2.08 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 10 million cubic feet. The system was forecast to carry 2.008 billion cubic feet today, compared with the estimated capacity of 2.018 billion.
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