Bloomberg News

Canadian Natural Gas Rises on Below-Forecast U.S. Supply Gain

November 25, 2011

Nov. 23 (Bloomberg) -- Canadian natural gas rose after the U.S. Energy Department said inventories last week gained less than analysts estimated and revised the previous week’s total.

Alberta gas rose 1.2 percent after the Energy Department said inventories rose 9 billion cubic feet to a record 3.852 trillion in the week ended Nov. 11. Stockpiles had been expected to rise 19 billion, the median of 22 analyst estimates compiled by Bloomberg. The department revised its Nov. 11 total to 3.843 trillion cubic feet from 3.85 trillion reported last week.

The revised stockpile numbers are “fairly bullish,” said Kyle Cooper, director of research at IAF Advisers in Houston. “It should give gas some support.”

Alberta gas for December delivery rose 3.75 cents to C$3.195 per gigajoule ($2.90 per million British thermal units) as of 12:55 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 cents, or 0.6 percent, to $3.435 per million Btu as of 1:01 p.m.

Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was at 16.2 billion cubic feet, 302 million below its target.

Gas was flowing at a daily rate of 2.24 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line.

Gas Flows

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 975 million cubic feet. The system was forecast to carry 1.75 billion cubic feet today, about 64 percent of its capacity of 2.72 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 2.69 billion cubic feet at 11:50 a.m.

Spectra issued an operation flow order because of low volume after buyers took large amounts of gas off the Westcoast transmission system during colder-than-normal weather in the Pacific Northwest last week. The company warned that customers could face penalties if they take off more than contracted volume effective today.

--Editors: Bill Banker, Charlotte Porter

To contact the reporter on this story: Gene Laverty in Calgary at

To contact the editor responsible for this story: Dan Stets at

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