Bloomberg News

Canadian Natural Gas Jumps Amid Colder U.S. Weather Forecasts

November 07, 2011

Nov. 4 (Bloomberg) -- Canadian natural gas rose as a wintry storm spread across the U.S. Great Plains and Rocky Mountains, boosting demand for heating fuels.

Alberta gas gained 1.2 percent as forecasters including AccuWeather Inc. predicted cold weather and accumulating snow from Colorado to southern Saskatchewan. Demand for heat in Denver will average 25 percent above normal through Nov. 11, according to Weather Derivatives of Belton, Missouri.

“It’s that time of year when you find a little weather demand,” said Carl Neill, an energy consultant with Risk Management Inc. in Atlanta. “We’re finally starting to see some demand come in.”

Alberta gas for December rose 4 cents to C$3.4725 per gigajoule ($3.23 per million British thermal units) as of 12:50 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 gained 2.8 cents to $3.806 per million Btu as of 12:53 p.m.

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was at its target level of 16.4 billion cubic feet.

Gas Flows

Gas was flowing at a daily rate of 2.16 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 1.96 billion cubic feet.

Available capacity on TransCanada’s British Columbia system at Kingsgate was 1.04 billion cubic feet. The system was forecast to carry 1.55 billion cubic feet today, about 60 percent of its capacity of 2.58 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 2.77 billion cubic feet at 11:35 a.m.

--Editors: Charlotte Porter, Bill Banker

To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus