Natural gas prices have risen sharply both domestically and internationally over the course of the last year with many analysts expecting gas prices to remain elevated as the commodity continues to displace coal for electric generation.
“The weird thing about this natural gas bull market is it’s happening globally in a way that’s extremely rare,” said Rory Johnston, managing partner and market economist at Toronto-based information services company Price Street Inc.Article content In Alberta, where producers have struggled in recent years amid sub-$1 natural gas prices at the AECO benchmark, the monthly index for August is $3.32 per gigajoules. Spot prices for gas have dipped below $2 this week, however, while TC Energy Corp. conducts scheduled maintenance on a gas pipeline system.
The company reported $45 million in net earnings in the second quarter compared with a $38 million net loss a year earlier. Canadian Natural, the country’s largest oil and gas producer, announced Aug. 5 that it would boost spending by $275 million this year and that its natural gas production would also ramp up from 1.6 billion cubic feet per day in the second quarter to 1.8 bcfd by the end of the year.
In the long run, Wang said Wood Mackenzie expects net-zero emissions’ pledges will cause natural gas demand to peak in the 2030s. The consultancy expects domestic natural gas demand in North America to peak and plateau in the early 2030s, though natural gas demand for exports from LNG facilities will continue to rise until the late 2030s.