Gas users in Canada's East Consuming Region (ECR) are expected to pay more for the fuel over the coming weeks even though the ECR is now in the gas injection season. The region’s over-dependence on supplies from the west of Canada and the northeastern United States is helping to bump up prices. Meanwhile, gas production in Canada’s ECR is falling, which is not helping the situation.
Unusually cold weather in the eastern half of the US is affecting pipeline gas supplies to Canada’s ECR. Forecasts suggest a 50% chance of below-average temperatures in the US northeast during the next 8-14 days, which will boost the region’s gas demand. Consequently, the Transco Z6 gas price in New York has averaged $2.81/MMBtu so far in May 2017, much higher than the $1.61/MMBtu it averaged in May 2016.
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