Wednesday, February 1, 2017

Western Canada Finishes January Trending Higher in NG Production, Storage Lower

Alberta's TC Nova system exited January at 11.3 BCFD in pipeline receipts, which was comparable to 2016 and resulted in a monthly average of 11.1 BCFD, which was about 0.1 BCFD below last year.

In 2016, the system reported its annual high production in February, exceeding 11.4 BCFD.  The higher rig count over the past year should help 2017 beat that production average if weather is cooperative.  

Stronger demand, both for exports and domestic consumption, has led to larger storage withdrawals this January vs last.  The month ended with 33.3 BCF withdrawn, vs 21.3 BCF last year, resulting in a diminution of the surplus in storage with which the year began.

The close up view: