Tuesday, January 3, 2017

Alberta Natural Gas Production and Storage Tighten in 2017

Cooler weather and the end of the holidays has seen the Alberta TC Nova system reporting reduced production volumes and larger withdrawals from storage compared to last year in the early days of 2017.

High daily receipts, near 11.5 BCFD, were seen in the last week of 2016, but the first two days of January averaged 11.1 BCFD, down 0.4 BCFD.  Jan-Feb-Mar are seasonally high months, and the rising rig count should translate into some biennial daily high receipts in the coming weeks.

On the storage front, the withdrawals in the first two days of the year averaged over 1.2 BCF, more than double last year.  Two days does not a trend make, and weather is colder than normal, but the nightmare of last year's excess storage volumes looks unlikely to be repeated (Net withdrawals in Jan-Mar of last year were zero!):