Natural gas prices in Canada have fallen to their lowest level in two years as storage facilities in Alberta reach full capacity amid weak demand.
Gas prices at the AECO hub in Alberta fell to $0.05 per million British thermal units (mmBtu), their lowest level since August 2022, according to market data.
Prices for natural gas have been trending lower throughout 2024 following a mild winter that left Canada with a significant surplus.
Analysts don’t see the current oversupply beginning to unwind and prices rising until colder winter weather arrives later this autumn.
Alberta has 504 billion cubic feet of natural gas storage, which is currently full. British Columbia and Saskatchewan have a further 80 billion cubic feet of capacity, of which 36 billion cubic feet is still available.
Western Canada’s natural gas storage levels are currently 30% higher than the three-year average for this time of year, say analysts.
Owing to the current surplus, many natural gas producers in Western Canada have begun to curtail or completely shutdown their operations for the time being.
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