Jan. 20 (Bloomberg) -- Canadian natural gas rose as extreme cold in Alberta boosted local demand for the furnace fuel and may crimp production.
Alberta gas rose 2.4 percent after temperatures in Calgary touched minus 28 Celsius (minus 18 Fahrenheit) yesterday, according to Environment Canada. Extreme cold can cause gas wells to freeze and processing equipment to work less efficiently. Forecasts for snow and cold in the U.S. North may not support gains in gas prices.
“It’s too little, too late,” said Carl Neill, an consultant with Risk Management Inc. in Atlanta. “The question now is how low can gas go.”
Alberta gas for February delivery rose 5 cents to C$2.16 a gigajoule ($2.02 per million British thermal units) at 12:30 p.m. New York time on 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.
Natural gas for February delivery on the New York Mercantile Exchange rose 2.4 cents to $2.346 per million Btu as of 12:33 p.m.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.6 billion cubic feet, 201 million below target.
Gas was flowing at a daily rate of 2.77 billion cubic feet at Empress, Alberta. The fuel is transferred to TransCanada’s main line at Empress.
At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the daily flow rate was 2.18 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 850 million cubic feet. The system was forecast to carry 1.59 billion cubic feet today, or 65 percent of its capacity of 2.44 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 3.04 billion cubic feet at 11:20 a.m.
--Editors: Charlotte Porter, David Marino
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