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Feb. 6 (Bloomberg) -- Canadian natural gas rose, reversing earlier declines, amid forecasts of colder-than-normal weather in the U.S. Midwest.
Alberta gas rose 1.5 percent. Temperatures in Minneapolis Feb. 10 will dip to minus 2 degrees Fahrenheit (minus 19 Celsius), 13 below normal, according to AccuWeather Inc. Demand for heat in the Midwest city will exceed normal by 31 percent that day, said Belton, Missouri-based Weather Derivatives.
“The near-term weather has improved” for gas prices, said Carl Neill, an energy consultant with Risk Management Inc. in Atlanta.
Alberta gas for March delivery rose 3.25 cents to C$2.16 a gigajoule ($2.06 per million British thermal units) at 2:45 p.m. New York time on NGX, a Canadian Internet market. NGX gas has lost 26 percent this year.
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 March delivery on the New York Mercantile Exchange rose 5.1 cents, or 2 percent, to settle at $2.55 per million Btu.
Spot gas at the Alliance delivery point near Chicago gained 8.35 cents, or 3.2 percent, to $2.6877 per million Btu on the Intercontinental Exchange. Alliance, an express line, can carry 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 advanced 9.06 cents, or 3.7 percent, to $2.5319. At Malin, Oregon, where Canadian gas is traded for California markets, gas rose 9.62 cents, or 3.8 percent, to $2.6546.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.9 billion cubic feet, 103 million above target.
Gas was flowing at a daily rate of 2.36 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 2.21 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 538 million cubic feet. The system was forecast to carry 1.9 billion cubic feet today, or 78 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 2.99 billion cubic feet at 1:35 p.m.
--Editors: Charlotte Porter, Bill Banker
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