Dec. 6 (Bloomberg) -- Canadian natural gas fell amid mild U.S. weather and abundant supplies that have pared demand for furnace fuels.
Alberta gas fell 1.4 percent after forecasters including AccuWeather Inc. predicted warmer weather for large U.S. cities. New York’s high will touch 56 degrees Fahrenheit (13 Celsius) tomorrow, 10 degrees higher than normal, AccuWeather said. U.S. stockpiles were 7.3 percent above the five-year average as of Nov. 25, according to the Energy Department.
“An extremely mild November explains some of the recent surge in the storage surplus,” said Stephen Smith, an analyst and president of Stephen Smith Energy Associates in Natchez, Mississippi. “Average onshore gas production has been routinely running 5 billion to 6 billion cubic feet a day higher than a year ago. It’s going to take a while to fix this problem.”
Alberta gas for January delivery fell 4.25 cents to C$3.055 per gigajoule ($2.86 per million British thermal units) as of 11:10 a.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 January delivery rose 3 cents to $3.491 per million Btu at 11:37 a.m. on the New York Mercantile Exchange.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.4 billion cubic feet, 152 million under its target.
Gas was flowing at a daily rate of 2.95 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 daily flow rate was 1.93 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 848 million cubic feet. The system was forecast to carry 1.88 billion cubic feet today, about 69 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 2.94 billion cubic feet at 9:50 a.m.
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