Canada Natural Gas Slips as U.S. Weather Forecasts Moderate
Canadian natural gas declined as revised forecasts showing more moderate U.S. weather for mid- August may signal limited demand by electricity generators.
August gas in Alberta fell 1.5 percent as MDA EarthSat Weather in Gaithersburg, Maryland, predicted normal temperatures in the Northeast and more of the Western U.S. over the next 11 to 15 days, instead of the hotter weather forecast yesterday. Hot weather has helped reduce a U.S. natural gas supply glut since the end of March by spurring power-plant demand.
“We have weather forecasts slipping back and forth a little bit,” said Gordy Elliott, a risk management specialist at Intl FC Stone LLC in St. Louis Park, Minnesota. “It’s a little surprising to see it down here simply for the fact that the forecast continues to stay warm.”
Alberta gas for August delivery declined 3.75 cents to C$2.42 per gigajoule ($2.28 per million British thermal units) as of 3:25 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. (TRP)’s Alberta system.
Natural gas for September delivery on the New York Mercantile Exchange fell 0.5 cent, or 0.2 percent, to settle at $3.209 per million Btu.
The high temperature in Boston may rise to 91 degrees Fahrenheit (33 Celsius) on Aug. 8, 10 above normal, before dropping six days later to 71 degrees, 9 below normal, according to AccuWeather Inc. in State College, Pennsylvania. Las Vegas may see a high of 92 on Aug. 14, 10 below normal.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16 billion cubic feet at 2:30 p.m. New York time, below the target of 16.2 billion.
Gas was flowing at a daily rate of 1.94 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 1.93 billion cubic feet.
The available capacity on TransCanada’s British Columbia system at Kingsgate was 171 million cubic feet today. The system was forecast to carry 1.85 billion, 92 percent of the estimated capacity of 2.018 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 2.78 billion cubic feet at 2:20 p.m.
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