Canadian U.S. gas trade hits new highs

Canada’s natural gas trade with the United States in 2005 produced gross revenues of C$35.3 billion and net gains of C$31.8 billion — both new benchmarks.

Pulled along by a 29 percent rise in average prices, the gross returns shattered the previous high of C$26.7 billion in 2004 by 32 percent.

Although gross export volumes were up over 2004 by 4.6 percent to 10.1 billion cubic feet per day and imports were down by 15 percent to 1 bcf per day, shipments fell short of the 2002 record of 10.34 bcf per day.

In releasing the figures, the National Energy Board reported that for almost every month of 2005 exports were above the previous year’s levels because of higher U.S. demand in certain export markets, reduced U.S. production stemming from hurricane activity and a slight rise in Canadian output.

The U.S. Northeast region took 16 percent more Canadian gas last year and the Midwest posted a 6 percent gain.

The California and Pacific Northwest markets were off about 8 percent, reflecting gains in hydro conditions and slightly above normal average temperatures.

The average export price ended the year at C$8.85 per gigajoule, compared with C$6.83 in 2004.

Other than 1999, revenues were below C$10 billion a year through the 1990s. Since then they have remained above C$20 billion, except for a brief dip in 2002.

—Gary Park