U.S. Natural Gas Export Trade to Mexico, Overseas Markets Offsetting Laggard Canada Deliveries, Says DOE

Both sides lost ground in the natural gas trade between Canada and the United States as emergency responses to the Covid-19 pandemic eroded economies during the first quarter of this year, according to the U.S. Department of Energy (DOE).

Canada fared worst, based on the latest trade scorecard compiled by the DOE’s Division of Natural Gas Regulation. Canadian exports to the Lower 48 dropped by 7% to 721.7 Bcf, or 7.9 Bcf/d in 1Q2020 from 776.2 Bcf or 8.6 Bcf/d in 1Q2019.

The average price fetched at the border by Canadian deliveries to the United States fell year/year by 32.7% to $2.37/MMBtu from $3.52/MMBtu.

The Canadian setbacks were nearly twice as severe as the contraction endured by U.S. exporters on their northbound cross-border gas flows.

U.S. exports to Canada...