November 22, 2010 / 9:45 PM / 9 years ago

Canada spot gas rises as West stays unusually cold

* 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.

Temperatures in New York and Chicago were seen below normal by mid to late-week, with lows below freezing in Chicago and near freezing in New York, according to DTN Meteorlogix.

The New York Mercantile Exchange December contract rose 10.7 cents to settle at $4.271 per million British thermal units, backed by the colder weather on tap for key consuming regions.

Supplies on Alberta’s main pipeline system ran at 15.68 billion cubic feet, 423 million cubic feet above the target linepack set by operator TransCanada Corp (TRP.TO).

Producers delivered 8.62 bcf to the system and a net 1.35 bcf of gas was withdrawn from Alberta storage facilities.

In exports, spot gas prices at Niagara, Ontario, averaged $4.69 per mmBtu, down 6 cents.

Gas at Huntingdon-Sumas on the British Columbia-Washington border surged 68 cents to average $5.38 per mmBtu.

($1=$1.02 Canadian)

AECO forwards: 11/22/10 11/19/10

Bal. November C$3.67-3.72 C$3.73-3.78

December C$3.73-3.78 C$3.64-3.69

Nov.’11-Oct.’12 C$4.31-4.36 C$4.24-4.29 (Reporting by Scott Haggett; editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below