March 1, 2012 / 8:12 PM / 6 years ago

Canadian spot gas at decade low on storage, demand

 * AECO drops C$0.02 to C$1.85/GJ
 * Export prices mixed
 CALGARY, Alberta, March 1 (Reuters) - Canadian spot
natural gas prices fell to a 10-year low on Thursday on a
disappointing storage report and weak demand due to mild
 Spot gas at the AECO storage hub in southeastern Alberta
fell 2 Canadian cents to average C$1.85 a gigajoule, the lowest
since July 2002. Deals were done between C$1.79 and C$1.89 a GJ.	
  In its weekly report, the U.S. Energy Information
Administration said gas inventories fell last week by 82 billion
cubic feet to 2.513 trillion cubic feet. Traders and analysts
polled by Reuters had expected a 90-bcf decline. 	
 U.S. stocks are at a record for this time and are likely to
end winter at an all-time high, particularly with no extreme
cold on the horizon.	
 In Canada, stock fell by 9.8 bcf, or 1.9 percent, last week
to 511.5 bcf, Canadian Enerdata reported. Storage facilities
ended the week 72.2 percent full. A year earlier they were at
33.9 percent of capacity.   	
 Environment Canada said low temperatures in Toronto will be
mostly above normal for the next six days. Southern Alberta
temperatures are forecast to rise above normal on Saturday and
stay warmer than usual through Tuesday. expects temperatures in the U.S. Northeast
and Midwest, key gas-consuming regions, mostly to average above
normal for the next 10 days	
 Alberta's main pipeline system ran at 16.51 bcf, 290 mmcf
under operator TransCanada Corp's target line pack.    	
 Producers delivered 10.27 bcf into the system and a net 1.47
bcf was withdrawn from storage facilities in the province. 	
 Export prices were mixed. Spot gas at Niagara, for shipment
into the U.S. Northeast, fell 6 cents to average $2.97 per
 Spot gas at Huntingdon-Sumas on the British
Columbia-Washington border averaged $2.50 per mmBtu, up 1 cent. 	
 ($1=$0.99 Canadian)	
 AECO Forwards:    3/01/12          2/29/12
 Bal. March        C$1.71-1.76      C$1.80-1.85
 April             C$1.80-1.85      C$1.89-1.94
 Nov.'12-Oct.'13   C$2.81-2.86      C$2.88-2.93
 (Reporting by Scott Haggett; editing by Rob Wilson)	

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