The temporary collapse in AECO, while frustrating for producers, isn\u0027t devastating. Find out more.
If you weren’t aware of some of the regional idiosyncrasies in natural gas pricing, you might be surprised to learn that western Canadian producers have seen spot gas prices plunge to zero in recent weeks, the opposite of the United States and Europe.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.
“There’s been a bunch of maintenance that has limited how much can leave Alberta,” said S&P Global Commodity Insights analyst Richard Frey. “When you lose that ability to move that production out of the province, you get a cratering of prices.” The temporary collapse in AECO, while frustrating for producers, isn’t devastating. Only about 40 per cent of gas production is sold at AECO, according to analysis from the National Bank, as many producers pay to move their gas on long-haul pipelines to the U.S. West Coast, Chicago and Central Canada, where prices have been much higher.Article content
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