Canadian Natural Gas: Monthly Market Update: March 2012
Foreword
The Canadian Natural Gas: Monthly Market Update is a monthly summary table prepared by the Petroleum Resources Branch of Natural Resources Canada. The table provides the most recently available data on natural gas prices and related fundamentals.
Please direct any comments or questions to Stacey Power at (613) 992-1023, or by email at stacey.power@nrcan.gc.ca
| Natural Gas Market Fundamental | Value | %Change Month 2012 vs. Month 2011 |
% Change Current Month vs. Previous Month | Year to date value (cumulative or average) | Year to date % change |
|---|---|---|---|---|---|
| Prices1, CAN $/GJ (Mar-12) |
2.05 | -39% | -17% | 2.47 (average) | -31% |
| Heating Degree Days2 (Mar-12) |
428 | -29% | -26% | 1692 | -18% |
| Production3, Bcf (Jan-12) |
473 | -6% | -3% | 473 | -6% |
| Sales4, Bcf (Jan-12) |
342 | -3% | +11% | 342 | -3% |
| Exports5, Bcf (Jan-12) |
274 | -18% | -1% | 274 | -18% |
| Imports6, Bcf (Jan-12) |
86 | -4% | -4% | 86 | -4% |
| Storage7, Bcf (Mar-12) |
497 | +110% | -11% | 567 (average) | +58% |
| Drilling8, wells (Mar-12) |
210 | -75% | -11% | 644 | -61% |
1 Is the price of natural gas at the major Canadian pricing point – the Intra-Alberta market, a.k.a. AECO. The price is for gas delivered under a 30-day contract. The Intra-Alberta market is formed by gas delivered to pipelines in Alberta. Gas changes hands via Nova Inventory Transfers (NIT), exchanges at the AECO storage hub, or sales facilitated by the Natural Gas Exchange (NGX). This is a commodity price – a wholesale price in the producing area. Consumer (or “burner tip”) prices will also include pipeline transmission and distribution costs, which vary across Canada.
2 HDD’s are a measure of how cold it is. The more HDDs in any season, the greater is natural gas demand for space heating.
3 Marketable natural gas is the gas available for consumption after processing and excludes producer or plant uses.
4 Sales include all natural gas sold to residential and commercial users (for space and water heating, cooking, etc), industries and electricity generating units in Canada.
5 Natural gas exports to the U.S.
6 Natural gas imports to Canada.
7 Natural gas storage levels in Canada. The amount of gas in storage generally follows a seasonal pattern. In the summer, when natural gas demand is low, gas is injected into storage. Storage volumes peak in the fall. In winter, volumes are drawn down, reaching a low point in the spring.
8 the number of natural gas well completions in Canada. There is a time-lag between drilling a gas well and starting production, due to the work necessary to connect the new well to the pipeline grid. Drilling is therefore a good indicator of future natural gas supply.