Utilizing data from RBN’s Canadian NatGas Billboard, working gas storage in Canada’s two largest markets of Alberta and Ontario remains well above historic averages and has been rising in recent days as weather across much of the nation has been extremely mild, denting space heating demand. Alberta working gas storage is estimated to be 352 Bcf as March 11 (left hand chart below), 64% higher than a year ago, 53% higher than the five-year average, and the fourth highest level on record for this time of year. In Ontario, storage is estimated to be a record for this date at 168 Bcf, 23% above one year ago and a chunky 75% higher than the five-year average (right hand chart). The warmest March-to-date since 1900 for Ontario has resulted in storage injections most days in the month and the record high.
Featured Articles
February Cold Pushes Strong Withdrawals from Alberta and Ontario Gas Storage
Canadian Gas Storage Near Record Highs with Bearish Consequences for AECO Gas Price Benchmark
Why Worry? - Above-Average Winter Withdrawals Expected for Canadian Natural Gas Storage
Canadian natural gas storage levels finished the most recent injection season at a record high. With what has been a fairly mild start to the heating season so far in North America, you might be tempted to think that Canadian storage levels would have been slow to draw down. On the contrary: so far, gas is being withdrawn from storage more quickly than might be expected from the winter weather alone, partly because of structural developments that have been emerging in the Canadian market. And these changes will help to draw storage levels down closer to historical averages by the end of the current heating season in March 2021. Today, we consider these structural changes and what the current heating season might have in store for the Canadian gas market.
