Canada’s gas glut favours pipeline flows to the US

By Abhishek Kumar 28 September 2016

Canada is in a gas glut, with the situation particularly severe in the West Consuming Region (WCR), home to almost 64% of the country’s gas-storage facilities. This – together with the healthy premium of the Henry Hub spot price in the United States over the AECO Hub equivalent in the WCR – is encouraging the flow of Canadian pipeline volumes into the US. This trend is expected to continue for the rest of the year.

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