Canada Gas Fluctuates on Cool Weather Brought by Hurricane Sandy
Canadian natural gas fluctuated as weather forecasts predicted longer-lasting lower temperatures in the eastern U.S. as a result of Hurricane Sandy, boosting heating demand.
Prices were unchanged after rising as much as 1.7 percent earlier today. Cooler weather will linger in the eastern U.S. and Midwest because of the storm, Commodity Weather Group LLC of Bethesda, Maryland, said.
“Natural gas is seeing some buying interest today, as the extensive power outages across the U.S. are being offset somewhat by higher demand from those places still with power,” Matt Smith, commodity analyst at Summit Energy Services Inc. in Louisville, Kentucky, said in a note to clients.
November gas in Alberta was steady at C$3.12 per gigajoule ($2.95 per million British thermal units) at 2:55 p.m. New York time on NGX, a Canadian electronic exchange. The November contract expires today.
Natural gas for December delivery on the New York Mercantile Exchange gained 0.1 cent to settle at $3.692 per million Btu.
Cooler weather from Sandy is expected to spread further into the Midwest over the next five days, Commodity Weather Group said. The average temperature in Cincinnati, Ohio, will be 41 degrees (5 degrees Celsius) tomorrow, 10 degrees below normal, said MDA EarthSat Weather of Gaithersburg, Maryland.
Sandy made landfall near Atlantic City, New Jersey, on Oct. 29, and knocked out power to 8.2 million people, the Energy Department said. There were still 6.2 million people without power today, the agency said.
Volume on TransCanada’s Alberta system, which collects the output from most of Canada’s gas wells, was 15.9 billion cubic feet at 2 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 rate was 2.12 billion cubic feet.
TransCanada’s British Columbia system at Kingsgate had 1.11 billion cubic feet per day of available capacity. The system was forecast to carry 1.37 billion cubic feet today, 55 percent of capacity.
The volume on Spectra Energy Corp.’s British Columbia system, which gathers the fuel in northeastern British Columbia for delivery to Vancouver and the Pacific Northwest, totaled 3.03 billion cubic feet at 1:35 p.m.
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