Canada Gas Price Plunges as Wildfires Shut Oil-Sands Output
- This year may see worst average price since 1990s: FirstEnergy
- Power generation used by mines, upgraders, drilling offline
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A bad start to the year for Canadian natural gas producers is getting worse after wildfires in northern Alberta knocked out oil-sands operations that represent a key source of demand.
Spot gas prices in Western Canada have been cut by more than half after oil-sands developers curtailed about 40 percent of their supply, reducing the amount of gas used to generate power for drilling and upgrading projects. Canada’s AECO spot gas fell to 53 cents U.S. per gigajoule on Monday, the lowest closing price since 1997, according to data compiled by Bloomberg.