January 28, 2025 – Calgary Herald
Varcoe: In 'another body blow', tariff threats already felt as Alberta natural gas prices lag U.S.
By Chris Varcoe
Canadian petroleum producers are worried about the potential impact of a proposed 25% tariff on all Canadian imports to the U.S., set to take effect as early as Feb. 1. Even the threat of these tariffs has already driven down Alberta natural gas prices, with AECO gas selling at a significant discount compared to U.S. benchmark prices. Industry leaders believe the uncertainty is increasing market volatility and discouraging investment.
“It’s the tariffs, but it’s also that we’ve got an oversupplied market . . . It just adds to more volatility and more uncertainty, which investors hate,” said Martin King, managing director of North American energy market analysis at RBN Energy.
Read the full article here https://calgaryherald.com/opinion/columnists/varcoe-tariff-threats-alberta-natural-gas-price-lags-us
While other factors, such as mild winter weather and high inventory levels, have also pressured gas prices, producers hope the upcoming launch of the LNG Canada project will help stabilize the market. If tariffs are imposed, analysts say their impact will depend on competition in U.S. markets, but Canadian producers are expected to face further losses.
