CALGARY, AB, May 20, 2014 /CNW/ – The Natural Energy Board today released its Short-term Canadian Natural Gas Deliverability, 2014-2016 Energy Market Assessment (EMA). This EMA examines the factors that affect natural gas supply in Canada in the short term, and presents an outlook for Canadian natural gas deliverability from the beginning of 2014 to the end of 2016.
Over the period assessed in the EMA, deliverability is expected to rise gradually, as declines in the output of dry natural gas are offset by rising production of more liquids-rich natural gas, from 397 106m3/d (14.0 Bcf/d) in 2013 to 414 106m3/d (14.6 Bcf/d) in 2016. In a Mid-Range Price Case, prices would increase from $3.73/MMBtu (Henry Hub prices in U.S. dollars) in 2013 to $4.35/MMBtu in 2016.
“This EMA shows again that Canadian natural gas markets are working well”, said the Board’s Chair and CEO Gaétan Caron. “Our work demonstrates that deliverability will readily meet Canadian demand, contributing to Canada’s successful pursuit of a sustainable energy future.”
The 2013-2014 winter was colder than average in parts of Canada and the U.S. and significantly increased natural gas demand for space heating and power generation. To help meet the increased demand, natural gas was withdrawn from storage at a faster rate than in previous years. With more natural gas supply needed to refill storage before next winter, natural gas prices may remain higher than recent levels to displace some demands and encourage some additional production.
A Higher Price Case would see natural gas prices reach $6.00/MMBtu by 2016, resulting in more natural gas drilling and Canadian deliverability increasing to 446 106m3/d (15.7 Bcf/d) in 2016. In a Lower Price Case, growth in markets for Canadian natural gas would be slowed by mild weather conditions with prices remaining at or below $4.00/MMBtu and deliverability declining to 385 106m3/d (13.6 Bcf/d) in 2016.
The National Energy Board is an independent federal regulator of several parts of Canada’s energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.
This news release, along with a fact sheet and the energy market assessment are available on the NEB’s Internet site at www.neb-one.gc.ca under What’s New!
SOURCE Government of Canada
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