Canadian natural gas slid on speculation that supply disruptions in the Gulf of Mexico from Tropical Storm Isaac will be minimal.
September gas in Alberta dropped 4.7 percent as the National Weather Service predicted Isaac may become a hurricane off the west coast of Florida in about four days. The Gulf accounted for about 7 percent of U.S. gas production in 2011, compared with 11 percent in 2008, Energy Department data show.
The storm impact “may be limited,” Pax Saunders, an analyst at Gelber & Associates in Houston, said in a note to clients today. “Consumers shouldn’t lose sleep over the impact of the storm on platforms.”
Alberta gas for September delivery declined 9.75 cents to C$1.99 per gigajoule ($1.91 per million British thermal units) as of 3:20 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. (TRP)’s Alberta system.
Natural gas for September delivery on the New York Mercantile Exchange fell 10 cents, or 3.6 percent, to settle at $2.702 per million Btu. Futures are down 9.6 percent this year.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.6 billion cubic feet at 2 p.m. New York time.
Gas was flowing at a daily rate of 2 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 2.16 billion cubic feet.
Available capacity on TransCanada’s British Columbia system at Kingsgate was 172 million cubic feet. The system was forecast to carry 1.85 billion cubic feet today, below the estimated capacity of 2.02 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 2.75 billion cubic feet at 2:20 p.m.
To contact the reporter on this story: Christine Buurma in New York at email@example.com
To contact the editor responsible for this story: Bill Banker at firstname.lastname@example.org