Enbridge Inc.’s natural gas subsidiary is testing support through mid-July to boost firm transportation service capacity for up to 96,000 GJ/d (91,200 MMBtu/d) at the Dawn Hub in Eastern Canada. If there is enough demand, the Enbridge Gas Inc. expansion could launch by Nov. 1, 2027. Service could begin sooner, depending on support, Enbridge noted. …
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Articles from AECO

Alberta’s Peyto Exploration Touts Limited Exposure to AECO Natural Gas Prices
Alberta Deep Basin pure-play Peyto Exploration & Development Corp. has all but eliminated its exposure to expected weak pricing at the AECO natural gas hub for the upcoming summer, CEO Jean-Paul Lachance said. Lachance hosted a conference call on Thursday (March 9) to discuss the gas-weighted producer’s fourth quarter and full-year 2022 results. Lachance noted…

Are Higher Canada AECO Natural Gas Prices a Pipe Dream?
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…

Arc Resources Expecting ‘Very Healthy’ Natural Gas Prices at AECO Through Winter
Montney Shale pure-play Arc Resources Ltd. is forecasting strengthened pricing at the NOVA/AECO hub in western Canada relative to the U.S. Henry Hub over the coming months, according to management. In a conference call to discuss third-quarter earnings, CFO Kris Bibby said “we are excited for the immediate near term in the winter. We would…

As Western Canadian Production Ramps Up, Natural Gas Prices Plummet
U.S., European and Asian natural gas prices soared this summer amid enduring global demand and worries about strained supplies. Western Canadian prices, in contrast, collapsed. What gives? Just as Canadian producers bolstered output to pandemic-era highs to help meet global demand this summer, a series of pipeline restrictions cut into takeaway capacity. Unplanned outages and…

Historic Heat Wave, Tight Balances Drive Steep Gains for Natural Gas Forward Prices as Core of Summer Still Ahead
Fueled by unrelenting heat across Pacific Northwest, Western Canada and the East Coast, natural gas forwards surged in the trading period ending June 30, according to NGI’s Forward Look. August prices shot up an average 19.0 cents over the six-day period, led by an astounding C28.0-cent climb at NOVA/AECO C. The stout gains continued throughout…

Petronas Boosts North Montney Footprint, Sells First Asian LNG Spot Cargo Linked to AECO
Malaysia’s state-owned Petroliam Nasional Berhad, aka Petronas, has increased its ownership of Montney shale production destined for liquefied natural gas (LNG) exports from British Columbia (BC) and added a Canadian price benchmark to its international marketing. Japan Petroleum Exploration Co. Ltd. (Japex) announced that it would sell its 10% share in a BC supply partnership…

July Natural Gas Futures Plummet Following Triple-Digit Storage Build Far Ahead of Expectations
Natural gas futures plunged Thursday after a hefty storage injection that easily surpassed the high end of analysts’ expectations and magnified supply/demand imbalance worries amid a coronavirus pandemic that has crippled economic activity and dwindled U.S. exports. The July Nymex contract dropped 11.5 cents day/day and settled at $1.482 /MMBtu — a fourth-consecutive day of…

NGI The Weekly Gas Market Report
West Coast Natural Gas Hubs Seeing Winter Basis Rise from the Ashes of Oil’s Fall
A number of western U.S. demand hubs have experienced notable basis uplift over the past month as the collapse in oil prices has decimated drilling activity and scrambled the Lower 48 supply outlook for the 2020/21 winter, NGI pricing data show.

Robust Storage, Weak Demand Equal Downside Room for Canadian NatGas Prices
Natural gas prices along the AECO forward curve — which already are showing signs of weakness further out the curve — could see near-month packages fall substantially in the coming weeks. Storage inventories in western Canada are nearing maximum capacity only one month into the traditional injection season, and demand is proving lackluster in high-density population centers that the region typically relies upon to take gas.