Canada

Natural gas production cuts have stabilized the fuel’s prices by countering weak Lower 48 winter demand, turning the market’s attention to the next big levers for fundamentals: the upcoming summer and added wind and solar capacity. Prompt-month New York Mercantile Exchange futures, trading above the $1.800 level at the start of April, had settled as…

Natural gas production in Canada proved robust through the past winter, even as heating demand waned in the back half of the season. Supplies in storage swelled and prices dropped as a result, mirroring and compounding conditions in the United States.  Related U.S. challenges include elevated supplies in the Pacific region, due in part to…

Baseload natural gas prices were trending lower for April delivery as excess end-of-winter inventory levels kept bidders hesitant on the first day of bidweek trading Friday (March 22), according to NGI’s Bidweek Alert (BWA). Trade was most active in Texas, where the supply glut has pushed Permian Basin prices negative, following in the footsteps of…

Canadian natural gas production and storage are both elevated heading toward shoulder season – much like in the United States – and bearish pressure on prices persists. There are hints that exploration and production (E&P) companies may pull back, following the lead of their Lower 48 brethren and creating the potential for supply/demand balance this…

Calgary-based Vermilion Energy Inc., whose North American exploration expertise extends overseas, said it is advancing key growth projects to add more “premium-priced” European natural gas to the portfolio, while divesting higher cost assets in Canada.  “With this high-graded asset base, we were able to deliver on the midpoint of our annual production guidance of 84,000…

Calgary-based Topaz Energy Corp. is targeting slightly higher natural gas-weighted royalty production in 2024 after posting double-digit growth in 2023.  The energy investment company does not operate, control or develop oil and gas assets. Rather, its royalty portfolio includes 60%-plus of undeveloped acreage, which attracts operator development with no capital. The revenue stream is primarily…

Western Canada independent Paramount Resources Ltd. has curtailed some of its natural gas production in Western Canada amid the low price environment. The independent, whose development is focused in the Montney Shale region, has shut in dry gas production and reduced its forecast 2024 average sales volumes by about 2,250 boe/d. The “company continues to…

Upstream natural gas and oil explorers in Canada are expected to increase their capital spending over 2023, but not by much, according to a top industry group. The Canadian Association of Petroleum Producers (CAPP) issued its latest survey of capital expenditures (capex) for the upstream sector in Canadian dollars (C$1.00/US74 cents).  Capex is forecast at…

The Biden administration’s pause on LNG export licenses may have opened the door for competing projects in Canada to gain ground after years of lagging behind. Canadian officials this month have been playing up their lower emission bonafides in the wake of their southern neighbor’s pause on licenses, in a bid to push for Canada’s…