Already a Bloomberg.com user?
Sign in with the same account.
Canadian natural gas rose as forecasts for hotter-than-normal weather next week in most of the U.S. signaled more demand for the power-plant fuel.
September gas in Alberta gained 4.2 percent as MDA EarthSat Weather in Gaithersburg, Maryland, predicted above-normal temperatures in most of the lower 48 states from Sept. 5 to Sept. 7. About 3 billion cubic feet, or 67 percent, of Gulf of Mexico gas production is shut because of Hurricane Isaac, a Bureau of Safety and Environmental Enforcement report yesterday showed.
“I have seen some temperatures slightly above normal for the next couple of weeks,” said Brad Florer, a trader at Kottke Associates LLC in Louisville, Kentucky. “It could be a bounce off the weakness we have seen over the past few days.”
Alberta gas for September delivery rose 6.75 cents to C$1.995 per gigajoule ($1.92 per million British thermal units) as of 2:20 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 rose 1.6 cents, or 0.6 percent, or $2.63 per million Btu at 1:21 p.m. The futures are down 12 percent this year.
The high temperature in Houston on Sept. 5 will be 93 degrees Fahrenheit (34 Celsius), 2 above normal, according to AccuWeather Inc. in State College, Pennsylvania. Detroit may be 83 degrees and New York may be 85 degrees, 6 above normal for both cities.
U.S. cooling demand may be 29 percent above normal in the week ending Sept. 5, according to Weather Derivatives in Belton, Missouri. Power generators account for 36 percent of U.S. gas consumption, Energy Department data show.
The National Hurricane Center said Isaac, with top winds of 75 miles (120 kilometers) per hour, was 10 miles northwest of Houma, Louisiana, at noon East Coast time. The Gulf accounted for about 7 percent of U.S. gas production in 2011, compared with 17 percent in 2005, Energy Department data show.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.1 billion cubic feet at 1 p.m. New York time, below the target of 16.2 billion.
Gas was flowing at a daily rate of 2.19 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 2.09 billion cubic feet.
There was no available capacity on TransCanada’s British Columbia system at Kingsgate. The system was forecast to carry 2.07 billion cubic feet today, above 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 3.01 billion cubic feet at 12:05 p.m.
To contact the reporter on this story: Naureen S. Malik in New York at firstname.lastname@example.org;
To contact the editor responsible for this story: Dan Stets at email@example.com.