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Canadian spot gas climbs despite big storage build

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Thu Aug 30, 2012 3:57pm EDT

* AECO up C$0.16 at C$2.13/GJ
    * Export prices mixed

    CALGARY, Alberta, Aug 30 (Reuters) - Canadian spot natural
gas prices rose on Thursday as above-average temperatures and
tight short-term supplies overshadowed a larger-than-expected
weekly U.S. inventory build.
    Spot gas at the AECO storage hub in southeastern Alberta
jumped 16 Canadian cents to average C$2.13 a gigajoule. Deals
were done between C$2.10 and C$2.21 a GJ.
    Temperatures in Toronto, Canada's largest market, are
forecast to be above average for the next six days, climbing to
33 C (91 F) on Friday, Environment Canada said. Southern Alberta
temperatures are expected be a degree or two on either side of
seasonal through Wednesday. 
    
    
    
    The U.S. Energy Information Administration said inventories
in the United States rose by 66 billion cubic feet last week,
compared with a Reuters survey estimate of 61 bcf.
 
    Canadian storage volumes rose 1.9 percent to 650.9 bcf.
Canadian Enerdata said facilities across the country were 89.2
percent full on average, compared with 74.7 percent full 12
months earlier. 
    Alberta's main pipeline system ran at 15.8 billion cubic
feet, 434 million cubic feet under TransCanada Corp's 
target line pack. Producers delivered 9.48 bcf into the system
and a net 130 mmcf was injected into storage facilities in the
province.
    Export prices were mixed. Spot gas at Niagara, for shipment
into the U.S. Northeast, rose 4 cents to average $2.91 per
mmBtu.         
    Spot gas at Huntingdon-Sumas on the British
Columbia-Washington border averaged $2.55 per mmBtu, down 3
cents. 
    ($1=$0.99 Canadian)
    
 AECO Forwards:    8/30/12          8/29/12
 September         C$2.06-2.11      C$1.94-1.99
 October           C$2.16-2.21      n/a
 Nov.'12-Oct.'13   C$2.69-2.74      C$2.69-2.74
 
 (Reporting by Jeffrey Jones; Editing by David Gregorio)
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