West cash prices continue to strengthen on limited supply of Canadian gas

摘要

West cash prices continued to move upwards Tuesday, likely onreduced supplies of Canadian gas.Cheyenne Hub rose 8 cents to $2.14/MMBtu, while NorthwestWyoming Pool gained 12 cents to $2.19/MMBtu.TC Energy-TransCanada began maintenance on May 6, which mayseverely cut production on the NGTL system, pushing up prices at AECOto $2.42/MMBtu, up 7 cents on the day, likely as NGTL’s Upstream ofJames River Area’s (USJR) receipt capacity is set to be cut to 9.4 Bcf/dthrough Saturday, May 11, down about 1.2-1.3 Bcf/d from normal levels.Westcoast Energy will allow about 1.1 Bcf/d to flow through Station4B South Wednesday through Friday, against a normal capacity of 1.7Bcf/d, according to the company’s website.Westcoast Station 2 rose 60 Canadian cents on the day to C$1.32/Gj despite the maintenance works, but may experience volatility,especially as capacity to the South toward Sumas is set to averageabout 1.17 Bcf/d during the maintenance work, down from 1.3 Bcf/dover the past 30 days.