Alberta natural gas prices to rise as winter temps poised to dip

"To what extent the Alberta natural gas price increases is yet to be determined, but at least the prices are at a low spot to begin with and, for the past five years, producers have enjoyed low natural gas prices," says Ryan Furtas, market analyst with Alberta Agriculture and Forestry.

Natural gas prices have risen due to lower supplies and rising demand. In North America, there was strong demand in the summer, which resulted in less gas being put into storage for winter months.

Prices are now poised to push higher, especially if a colder than normal winter occurs.

The upward pressure on the gas prices is global and North American markets are influenced by prices in other markets since gas can be exported. Prices for gas in Europe and Asia are nearly four times that of the port-ready North American values.

"Here in Alberta prices have risen, but so far the increases could be described as minimal, especially since 2020, and the past five years has had relatively low gas prices. The Alberta price in September 2021 for natural gas increased to $3.87/GJ (Gigajoule), the highest price it's been for the past five years," says Furtas.

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Source: Greenhouse Canada