Canada

With increased demand at home, Canada had less natural gas to export to the U.S. during the gas contract year that ended last Oct. 31, a final tally by the National Energy Board (NEB) showed. Canadian exports to the United States shrank by 4.8% during the contract year, the NEB said. Total contract year pipeline deliveries to all U.S. destinations were 3.55 Tcf, down from 3.73 Tcf in the 12 months that ended Oct. 31, 2005.

With increased demand at home, Canada had less natural gas to export to the U.S. during the gas contract year that ended last Oct. 31, a final tally by the National Energy Board (NEB) showed. Canadian exports to the United States shrank by 4.8% during the contract year, the NEB said. Total contract year pipeline deliveries to all U.S. destinations were 3.55 Tcf, down from 3.73 Tcf in the 12 months that ended Oct. 31, 2005.

With the cold regime that has settled into much of the U.S. and Canada appearing more and more set for an extended stay, cash prices continued to rise Tuesday. The advance was across the board for a second day and derived extra support from Monday’s futures spike of 43.3 cents.

El Paso Corp. said it has paid PPM Energy and PPM Energy Canada Ltd $188 million to assume a 145,750 MMcf/d firm capacity obligation on Alliance Pipeline. El Paso said it will take a one-time charge in that amount in the fourth quarter.

To accommodate additional supply coming in from the Rockies Express pipeline and from the Midcontinent and Canada, Boardwalk Pipeline Partners LP said Wednesday that subsidiary Texas Gas Transmission LLC is planning a third expansion of its gas storage operations that would add 113,900 MMBtu/d of deliverability and 10.25 trillion Btu of working gas capacity to its total storage operations, which includes nine fields in Indiana and Kentucky.

In its winter outlook forecast for Canada’s energy markets, the National Energy Board (NEB) said last week a normal winter season could lead to natural gas prices in the US$6-7/Mcf range, “with continued strong drilling and production.” A colder-than-average winter, however, could lead to price spikes above $7, with increased liquefied natural gas (LNG) imports attracted by the higher prices.

With severe cold already well established in much of the interior West and Western Canada, and cold fronts having brought winter-like chills back into the Midwest and poised to do the same Thursday for the Northeast and South, the cash market rang up double-digit gains across the board Wednesday. An 11.8-cent futures advance the day before gave added support.

In its winter outlook forecast for Canada’s energy markets, the National Energy Board (NEB) said Tuesday a normal winter season could lead to natural gas prices in the US$6-7/Mcf range, “with continued strong drilling and production.” A colder-than-average winter, however, could lead to price spikes above $7, with increased liquefied natural gas (LNG) imports attracted by the higher prices.

The trio of producers hoping to develop a pipeline to deliver Alaska natural gas to Canada and the Lower 48 could very well be negotiating the deal with a new governor since Gov. Frank Murkowski was soundly defeated in his bid for re-election in the state’s Republican primary Tuesday.