September 23, 2024
Canadian natural gas prices fall to two-year low as storage fills
By Nia Williams
Canadian natural gas prices fell to their lowest in over two years on Monday, driven by near-full storage levels in Alberta and weak demand across North America. Prices at the AECO hub dropped to 5 Canadian cents per mmBtu, their lowest since August 2022. The mild winter of 2024 left Canada with excess supply, and now, with summer demand fading, storage levels are nearly full. RBN Energy's Martin King expects prices to remain low until colder weather arrives in late October.
Alberta's natural gas storage is nearly full at 504 billion cubic feet, with additional capacity available in British Columbia and Saskatchewan. As a result, some producers, including ARC Resources and Canadian Natural Resources, have shut in or delayed natural gas wells. Approximately 700-800 million cubic feet per day of production is currently offline. Many analysts are looking ahead to the LNG Canada project in 2025, which could boost demand and support AECO prices.
Read the full article here: Canadian natural gas prices fall to two-year low as storage fills | Reuters
