February 26, 2025 Natural Gas Intelligence
Canadian Natural Gas Storage Shrinks from Record Levels, but Price Response Muted
By Kevin Dobbs
The February deep freeze across central North America drove a surge in natural gas consumption in Canada, leading to significant withdrawals from storage, particularly in Alberta and Ontario. By mid-February, Canadian storage had dropped significantly, with Alberta recording its third-largest withdrawal for the month in 30 years and Ontario its fourth-largest since 2010.
“At the start of this week, RBN Energy LLC estimated Canadian gas storage at 471.4 Bcf. That was down by 313.3 Bcf from the start of the year, when storage hung near record winter levels, RBN Energy analyst Martin King told NGI.”
Read the full article here: Canadian Natural Gas Storage Shrinks from Record Levels, but Price Response Muted
Despite this, Canadian inventories remained slightly above historical norms, unlike in the U.S., where storage fell into a deficit. Canadian natural gas production hit record highs above 19 Bcf/d, outpacing demand and keeping spot prices relatively stable, in contrast to the sharp price spikes in the U.S.
Canadian gas exports to the U.S. also declined from earlier highs, with imports by the U.S. dropping from over 10 Bcf/d to around 6 Bcf/d. Further reductions may occur due to President Trump’s planned tariffs on Canadian energy imports, set to take effect in early March. These tariffs could make Canadian gas less competitive in the U.S. market, potentially stranding more supply in Canada and suppressing prices. Economists warn that tariffs may slow U.S. economic growth, which could also reduce energy demand.
