Data from RBN’s Canadian NatGas Billboard report reveals that Alberta, Canada’s largest gas consuming province, posted record high gas demand on January 12 of 8.74 Bcf (blue dashed oval in chart below), easily eclipsing the previous record holder of 8.27 Bcf set on February 23, 2023 (green dashed oval). The latest intense cold snap that punished Western Canada last week (and much of North America this week) was the driver of the record demand, which also set new record highs for the province’s gas use in the oil sands and power generation. In the past eight days, the cold weather has generated six of the top ten gas demand days in Alberta. With recent forecasts calling for milder conditions next week, the province’s gas demand should pull back in the range of 10%-15% from these strong levels.
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You Rock My World - February's Cold Blast Sets New Records for the Canadian Natural Gas Market
The February 2021 polar vortex will be one for the natural gas record books in the U.S. and Canada — and the month isn’t even over yet! Though no stranger to frigid weather, Canada’s natural gas market has felt the impacts of this month’s extreme cold on both sides of the border. Its own prices, demand, and storage withdrawals have reached multi-year or all-time records as gas buyers have jockeyed for molecules from anywhere they can get them. Gas exports to the U.S. have reached highs not seen for more than a decade, adding emphasis to what has been an emerging turnaround story for Canadian gas into the U.S. market. To top things off, the latest gas market records might be a preview of what is to come in the next few years as Canada’s structural demand for natural gas continues to increase, regardless of how cold it is. Today, we describe all the latest Canadian gas market action and what might be in store for next winter.
Out of This World – Latest Cold Blast Sets New Records for the Canadian Gas Market
In a part of the world where enduring a cold winter is often seen as a badge of honor, the latest cold blast that descended on Canada just before Christmas — and during Christmas in the U.S. — was another one for the natural gas record books. By almost every measure, the recent frigid temperatures, though not long-lasting, set new Canadian records for daily demand, storage withdrawals, and net exports to the U.S., and went well beyond the records set during Winter Storm Uri in February 2021. In today’s RBN blog, we delve into the latest record-busting Canadian gas data.
Back on the Borderline - Canada's Natural Gas Market Remains Mired in Oversupply at Midwinter
The current winter heating season in Canada has seen extremes of warmth and cold, but much more of the former than the latter. Given that the Canadian natural gas market was already oversupplied and struggling with record-high gas storage levels as winter approached, even the most intense cold blast in mid-January wasn’t enough to return the supply/demand balance north of the 49th parallel to anything near normal. In today’s RBN blog, we discuss where the Canadian market stands as the calendar turns to February and what that might mean for end-of-winter gas balances.
