The price of the AECO prompt month contract, Western Canada’s benchmark forward natural gas price and similar in concept to the NYMEX Henry Hub prompt month futures price, settled at C$1.15/Gigajoule (GJ) or $0.88/MMBtu on April 15 (see right hand arrow marker in chart below), its lowest value since October 1, 2019 when it was C$0.90/GJ (left hand arrow marker). Yes, these are the lowest prices in four and half years, even after including the dark days of COVID-impacted pricing in the first half of 2020! The price weakness of 2019 was driven by structural pipeline constraints in the Alberta market which resulted in severe oversupply and gas-on-gas competition.
Featured Articles
- Analyst Insight
Western Canada’s June Natural Gas Cash Prices Struggle Against Pipeline Flow Restrictions
Once again, pipeline flow restrictions in the Alberta market appear to be punishing the AECO natural gas cash price marker.
- Analyst Insight
Ouch! Western Canada’s Natural Gas Cash Prices Struggle Despite Near Continent-Wide Cold Snap
Even with natural gas prices roaring elsewhere because of widespread cold weather in North America, AECO cash prices remain largely in the dumps and not participating in the recent price rally.
- Analyst Insight
Canadian Gas Storage Near Record Highs with Bearish Consequences for AECO Gas Price Benchmark
Canadian gas storage is well above historic averages for this time of year with very bearish implications for AECO gas prices this summer.
