Quote:
Originally Posted by Drummer
Does Alberta ship natural gas to MB and ON? And to the Midwest US? With the cold weather in MB and the US Midwest does this mean more profit for more natural gas exported?
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Yes we do ship it to those areas (primarily out to Ontario and to Chicago) and yes it
can mean more profit... However with the rise of US shale gas, the discount Alberta gas takes (ie: AECO basis) can blow out... For instance, producers selling out of North Western AB, unless they have firm service on Alliance or Nova, are likley selling interruptable, and receiving AECO less CREC. That means they are getting $.25-$.75 a GJ for their gas some months.
So long story short - depending on the contracts a company holds, yes, cold weather out east is the primary driver for demand-side price movement in the NA gas market.