Utilizing data from RBN’s Canadian NatGas Billboard, working gas storage in Alberta, the region in Canada with the largest working gas capacity, was pegged at 449 Bcf as of July 1 (red line in chart below). This is the second highest on record for this point of the year, only surpassed by 467 Bcf in 2016. This is about 31 Bcf below Alberta’s estimated working gas storage capacity of 480 Bcf (black dashed line). Given recent storage injection trends in Alberta, working gas storage could be reaching effective capacity limits by the end of July. This would be the second time in eight years – the first being in 2016 – that Alberta gas storage has reached the limits of effective capacity well in advance of the start of the heating season on November 1.
Featured Articles
- 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.
- Analyst Insight
Canadian Natural Gas Prices Crater - Lowest Since '19
The AECO prompt month contract price hit a four-and-half-year low a couple of days ago. Given well above average gas storage levels in Alberta and robust gas production in Western Canada, we could be looking at more weak pricing for the summer.
- Blog
Don't Be Afraid - Low Alberta Gas Storage Is Not Spooking the AECO Winter Market, Yet
Alberta natural gas storage, one of the largest regional storage hubs in North America, is experiencing one of its slowest cumulative storage injection rates in years and could be headed to a 13-year low for storage levels by the end of the current injection season. That may seem ominous for the chilly Alberta and Canadian winter heating season, not to mention gas exports to the U.S. So far, though, winter gas forward prices for the Western Canadian gas price benchmark of AECO have registered a relatively modest market response, staying in line with last winter’s average spot price. Today, we take a closer look at the market’s apparent lack of concern over low Alberta gas storage.
