Oct. 3 (Bloomberg) -- Canadian natural gas fell as mild weather eased demand for the power plant fuel to run air conditioners and as storage increased in preparation for winter heating requirements.
Prices, which usually follow their U.S. counterparts on the New York Mercantile Exchange, dropped 1.3 percent as MDA EarthSat Weather of Gaithersburg, Maryland, said temperatures along the Atlantic and Pacific coasts would be 3 degrees to 14 degrees Fahrenheit (2 degrees to 8 degrees Celsius) below normal this week and would be normal to below-average across the West by Oct. 17.
“It’s pretty mild weather out west,” Peter Linder, president of the DeltaOne Energy Fund in Calgary, said in a telephone interview. “It’s a shoulder month transitioning between the seasons, and with the weaker U.S. economy, storage levels will not be as positive as they have been through the summer.”
Alberta gas for November delivery fell 4.5 cents to C$3.33 per gigajoule ($3.01 per million Btu) as of 3:15 p.m. New York time, while December gas was down 3.25 cents to C$3.59, according to NGX, a Canadian Internet market. Gas traded on the exchange is shipped to users in Canada and the U.S. and is priced on TransCanada Corp.’s Alberta system.
Gas for November delivery on the Nymex dropped 4.9 cents to settle at $3.617 per million Btu.
Gas at the Alliance Pipeline delivery point near Chicago declined 2.74 cents, or 0.7 percent, to $3.6605 per million Btu on the Intercontinental Exchange. Alliance is an express line that can carry about 1.5 billion cubic feet a day to the Midwest from western Canada.
At the Kingsgate point on the border of Idaho and British Columbia, gas dropped 10.74 cents, or 3.1 percent, to $3.3989, according to ICE.
At Malin, Oregon, where Canadian gas is traded for California markets, gas fell 12.54 cents to $3.4858 per million Btu.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.3 billion cubic feet, 500 million above the target, as of 2 p.m. New York time.
Gas was flowing at a daily rate of 2.57 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 1.8 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 641 million cubic feet. The system was forecast to carry 1.45 billion cubic feet today, about 69 percent of its capacity of 2.09 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 2.87 billion cubic feet at 2:05 p.m.
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