The supply glut plaguing the industry this fall is so large that not everyone is convinced the massive facility's impact on pricing will be as dramatic or sustained as once hoped.
RELATED VIDEO: Construction on the $40-billion LNG Canada facility is more than 85 per cent complete in Kitimat, an industrial town on B.C.'s North Coast.
The bearish prices have come due to a combination of increased production levels — up about six per cent year-over-year so far in 2024 — as well as last year’s mild winter, which resulted in less natural gas consumption for heating purposes. There is now an oversupply of natural gas in Western Canada, so much so that natural gas storage capacity in Alberta is essentially full.
In light of the current depressed prices, Advantage has started strategically curtailing its gas production by up to 130 million cubic feet per day, depending on what the spot market is doing. “That sink of 2 Bcf a day will logically take three-plus years to fill. And then if LNG Canada Phase 2 happens, then obviously that’s even more positive,” Rose said.While Belenkie said he agrees LNG Canada will lift prices, he’s not as convinced as Rose that the benefits will be sustained for a long period of time.
Economy Energy LNG Canada Economy
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Natural gas producers await LNG Canada's start, but will it be the fix for prices?Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.
Read more »
Natural gas producers await LNG Canada's start, but will it be the fix for prices?Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.
Read more »
Natural gas producers await LNG Canada’s start, but will it be the fix for prices?The supply glut plaguing the industry this fall is so large that not everyone is convinced the massive facility’s impact on pricing will be as dramatic or sustained as once hoped
Read more »
Natural gas producers await LNG Canada's start, but will it be the fix for prices?CALGARY — Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.
Read more »
Natural gas producers await LNG Canada's start, but will it be the fix for prices?CALGARY — Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.
Read more »
Natural gas producers await LNG Canada's start, but will it be the fix for prices?CALGARY — Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.
Read more »