Discounted pricing at the NOVA/AECO C natural gas hub in Southern Alberta is likely to remain a fact of life over the near term, even if pipeline expansions and LNG exports in Western Canada come online as scheduled, according to experts.

Abundant gas supply from the Western Canadian Sedimentary Basin (WCSB) and limited egress capacity out of the region have historically kept downward pressure on the price of gas delivered to AECO, the hub that is synonymous with TC Energy Corp.’s Nova Gas Transmission Ltd. (NGTL) pipeline system.

Pipeline maintenance on NGTL can also cause AECO prices to collapse as molecules have nowhere to go.

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