Feb. 17 (Bloomberg) -- Canadian natural gas rose after EnCana Corp., the nation’s biggest producer of the fuel, said it would cut production.
Alberta gas gained 4.5 percent. Calgary-based EnCana said it will reduce North American output by as much as 600 million cubic feet a day. Talisman Energy Inc., another large Canadian producer, said Feb. 15 it would cut spending on exploration by about $500 million this year and U.S. inventories fell last week by more than analysts expected.
“We’re seeing different folks saying they’re going to cut production and capital expenses,” said Kyle Cooper, director of research at IAF Advisors in Houston. “The temperature-adjusted storage changes are actually quite bullish. People are starting to see the bottom.”
Alberta gas for March delivery rose 9.25 cents to C$2.135 a gigajoule ($2.04 per million British thermal units) at 3:05 p.m. New York time on NGX, a Canadian Internet market. NGX gas has advanced 1.9 percent this week.
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 11.7 cents, or 4.6 percent, to settle at $2.684 per million Btu. The futures gained 8.4 percent this week.
Spot gas at the Alliance delivery point near Chicago jumped 15.52 cents, or 5.9 percent, to $2.7802 per million Btu on the Intercontinental Exchange. Prompt delivery at Alliance, an express line that can carry 1.5 billion cubic feet a day from western Canada, gained 1.75 percent this week.
At the Kingsgate point on the border of Idaho and British Columbia, gas advanced 13.21 cents, or 5.5 percent, to $2.549. At Malin, Oregon, where Canadian gas is traded for California markets, gas was up 15.71 cents, or 6.2 percent, to $2.689.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.4 billion cubic feet, 374 million below target.
Gas was flowing at a daily rate of 2.11 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 2.13 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 431 million cubic feet. The system was forecast to carry 2.01 billion cubic feet today, or 82 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 2.85 billion cubic feet at 2:05 p.m.
--Editors: Charlotte Porter, Bill Banker
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