Canada Natural Gas Declines as Mild Weather Forecast for Midwest
Canadian natural gas fell amid forecasts of above-normal temperatures in the U.S. Midwest, the largest consuming region for Canada’s gas output.
Alberta gas dropped 0.6 percent as forecasters including AccuWeather Inc. predicted temperatures in the north-central U.S. will be above normal through Nov. 16. Chicago’s high may reach 62 degrees Fahrenheit (17 Celsius) Nov. 14, 12 above normal, said the State College, Pennsylvania-based company.
“There are no consistent forecasts of sustained colder weather,” said Kyle Cooper, director of research with IAF Advisors in Houston. “That’s what this market needs to support it.”
Spot gas at Canada’s benchmark AECO C hub in Alberta fell 2 cents to C$3.17 per gigajoule, according to data compiled by Bloomberg. AECO gas traded in U.S. dollars fell to 1 cent to $3.31 per million British thermal units.
At the Huntingdon-Sumas point on the border of Washington and British Columbia, gas fell 2 cents to $3.77 per million Btu, Bloomberg data showed.
Alberta gas for December was unchanged at C$3.36 per gigajoule as of 5 p.m. New York time, according to 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.
Gas for December delivery on the New York Mercantile Exchange rose 4.9 cents to settle at $3.745 per million Btu.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was at 16.4 billion cubic feet, 94 million below its target.
Gas was flowing at a daily rate of 1.97 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 1.95 billion cubic feet.
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 2.88 billion cubic feet at 4:20 p.m.
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