Nearly all of the natural gas produced in Canada is produced in its westernmost provinces. In August , TransCanada now TC Energy changed operations on their NOVA system , prioritizing firm-service customers and stopping deliveries to interruptible customers which includes storage operators—during maintenance periods. This change resulted in the AECO natural gas spot price undergoing increased volatility as a result of stranded natural gas and reduced injections into natural gas storage. As a result, Alberta entered the winter season on November 1, , with total natural gas storage inventories of Bcf, which was more than Bcf lower than the three-year average to
U.S. Energy Information Administration - EIA - Independent Statistics and Analysis
This impact was magnified on April 20, when WTI prices plummeted into the negatives. On the other hand, one could hardly be blamed for quickly glancing over the local gas price forecasts which experienced a much smaller drop:. This begs the question - why has the price drop for natural gas; and AECO specifically, been so much less than oil? One would reasonably expect the unprecedented and indiscriminate global slowdown due to COVID would affect all aspects of industry equally. In fact, short term strip prices futures vs.
The Energy Transitions Commission has warned that rapidly increasing demand for biomass and biofuel Denver — Despite AECO gas hub showing its highest cash price value in years this winter, gas-to-coal switching has so far failed to materialize in the region, meaning demand could increase this coming winter despite higher natural gas prices. With AECO cash prices expected to be the highest they have been in years this winter, gas-fired plants could ramp down their utilization as coal becomes the more economical generation choice. This was about 60 cents stronger than the past three winters, raising the possibility that the market could experience gas to-coal switching.