NEB forecasts higher natural gas prices this winter
By Brandi Cowen
Canadians can expect to pay more for natural gas this winter, but supply will be plentiful, according to the National Energy Board’s (NEB) Winter Energy Outlook.
Despite abundant supply and storage, a seasonally normal winter weather forecast and a slow growing North American economy, natural gas prices this winter are expected to range between $2.75 and $3.25 per GJ. However, this winter’s record storage volumes could place downward pressure on natural gas prices.
Production increases in the U.S. and an unseasonably warm winter in 2011 resulted in a large storage overhang and 10-year low prices last spring. In response to these low gas prices, demand for gas from the U.S. power generation sector has increased considerably, resulting in a narrowing of the balance between supply and demand by mid-2012.
Check out the NEB’s winter outlook here.