Canada spot gas rises as West stays unusually cold

Mon Nov 22, 2010 9:42pm GMT
 

* AECO spot gas rises C$0.06 to C$3.80/GJ

* Futures climb on colder U.S. weather forecasts

* Export prices mixed

CALGARY, Alberta, Nov 22 (Reuters) - Canadian spot natural gas prices jumped to a five-month high on Monday as frigid temperatures in Western Canada continued to boost heating demand for the fuel.

Spot gas at the AECO storage hub in southeastern Alberta rose 6 Canadian cents from Friday to average C$3.80 a gigajoule, its highest price since June 25.

Deals were done in a narrow range between C$3.78 and C$3.83 a GJ.

The week-long cold snap is the first major chill of the season in the region, where much of the country's production is located. Along with larger load has come the biggest withdrawal from storage facilities in Alberta for the current heating season and a cut in supplies .

Environment Canada said low temperatures in southern Alberta will remain well under the -10 Celsius (14 Fahrenheit) seasonal average until Friday, dipping to -27 C (-17 F) on Tuesday.

Toronto low temperatures are forecast to be at or above the -2 C (28 F) norm through Sunday.   Continued...

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