Monday, December 12, 2016

Alberta Gas Storage Shrinks to Feed Weather Demand in Canada and US

TC Nova's Alberta gas storage has fallen by about 3 BCFD for the past six days as cold weather descended into North America.  Those daily storage draws are comparable to the largest single day withdrawal of the entire previous winter, and storage has fallen by 22 BCF in December alone.

The cold, and presumably some maintenance, have also pulled production down, and daily receipts on the TC Nova system are averaging just 10.5 BCFD in December, against 11.2 BCFD last year, and 10.7 BCFD last month.  Over the last week, output has averaged just above 10 BCFD.  Production should bounce back soon if rig counts are any indication.

Here are the daily storage changes.  Alberta withdrew just 3 BCF in the entire month of December 2015, so this month's 22 BCF withdrawal in just 11 days will far surpass that.