Articles tagged Westcoast Station 2

Natural gas futures pushed higher Wednesday as traders positioned for a possible rare midsummer storage draw that would add further evidence of tightening market balances.

The commercial start up of Western Canada’s first natural gas export project, LNG Canada, is going to lead to an uptick in Montney Shale drilling in 2025, according to Calgary-based Precision Drilling Corp.

Working natural gas in storage is on the cusp of topping out in Alberta, the Canadian province with the largest capacity.

Stout Canadian supplies of natural gas in storage following a mild winter and robust levels of production continue to pressure prices north of the U.S. border.

July baseload natural gas prices for Canadian hubs weakened further during the final day of bidweek trading on Wednesday, while Lower 48 hubs maintained an overall upward trajectory from June, according to NGI’s Bidweek Alert.

Much of Canada could endure sizzling summer conditions that could drive robust cooling demand and potentially curtail hydropower – amplifying demand for natural gas.

Following a record-setting outbreak in 2023, a fast start to the wildfire season is already threatening interruptions to Canada’s largest crude oil production region. Blazes in the western reaches of the country, if not contained, could also hamper natural gas output in a potential replay of last summer.

Natural gas production held near all-time highs through the first quarter in Canada, even as prices slumped following a mild winter that left supplies in storage at robust levels. That’s because producers are looking beyond near-term weakness and toward an anticipated jump in export demand, according to analysts.

Natural gas production in Canada proved robust through the past winter, even as heating demand waned in the back half of the season. Supplies in storage swelled and prices dropped as a result, mirroring and compounding conditions in the United States.