The record pace of drilling in Canada has finally started to pay off. Canada’s National Energy Board (NEB) reported that natural gas exports to the United States through February of this year were up 1.3% to 626.5 Bcf, or about 10.44 Bcf/d, compared to 618.7 Bcf, or 10.31 Bcf/d, over the same period in 2003.

The NEB said the biggest volume increase was to the California market where exports jumped 23%. Volumes to the Pacific Northwest rose 15%. Exports to the Northeast and Midwest fell by 7% and 0.8%, respectively.

Gas exports in the month of February totaled 303.7 Bcf compared to 291.7 Bcf in February 2003. During 2003, exports fell to 3.5 Tcf, their lowest level since 1999 when exports were 3.37 Tcf.

The U.S. Energy Information Administration expects gross pipeline imports to fall this year to 3.28 Tcf from 3.42 Tcf in 2003. Meanwhile, Lehman Brothers analyst Thomas Driscoll said on Tuesday that he expects Canadian gas production to rise 1.2% this year to 16.6 Bcf/d. Driscoll said first quarter Canadian production was flat at 16.5 Bcf/d based on a survey of 14 major gas producers.

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