2017 wasn’t a great year for natural gas pricing in Canada, with AECO prices averaging near $1.70/MMBtu and widening differentials to Henry Hub. Growing production in 2018, limited demand growth, quickly filling pipeline capacity, and strong US competition all placed significant pressure on the Western Canadian gas markets. 2018 isn’t poised to resolve many of these issues either. Despite this, Canadian producers have persevered and continued to grow Western Canadian natural gas production, placing more gas into an already crowded market.

The chart below shows that, while Henry Hub prices have remained relatively stable near $3.00/MMBtu over the past year, the spread to AECO has been growing since early 2017. For the first half of 2017, AECO traded just under $1.00/MMBtu back from Henry. For the second half of the year the spread averaged over $1.60/MMBtu back.

Keep reading - https://btuanalytics.com/north-of-the-border-gas-pushing-prices-south/

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Shale Gas News – November 10, 2018

Posted by Thomas J Shepstone on November 12, 2018 at 9:37am 0 Comments

The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM and Sundays on YesFM, talked about the Colorado election, Keystone XL Pipeline, Blue Racer Midstream and much more last week.

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