Page 7 - NorthAmOil Week 47 2022

NorthAmOil PERFORMANCE NorthAmOil

Natural gas trade between Canada and

US lower but still important – EIA

NORTH AMERICA GROSS imports of dry natural gas from Canada Sumas, Washington, and Eastport, Idaho, prin-
accounted for, on average, 8% of US supply as cipally supply metropolitan areas in the Pacific
of the end of August, said the US Energy Infor- Northwest and California, where several factors
mation Administration (EIA). In 2005, 17% of have challenged supply and demand balances in
the total US supply of dry gas was imported from 2022.
Canada. There has been more demand for electric
Canada’s share of imported dry gas supply to power to run air-conditioning owing to sus-
the US has declined because US domestic gas tained high temperatures and an extreme heat The gas trade
production has grown. wave this summer. There has been less hydro-
But despite this reduction, the gas trade electric power – a staple in the North-Western between the two
between the two countries remains important US – because of drought. And there has been
in balancing US supply and demand, especially reduced gas inflows to the west from the Per- countries remains
during the cold winter months, said the agency, mian Basin in Texas and New Mexico owing to
part of the US Department of Energy (DoE). pipeline constraints important in
As of the end of August, US gas production In the eastern US, gas pipeline capacity balancing US
averaged almost 2,750mn cubic feet (77.9mn has expanded, and the region is typically a net
cubic metres) per day, according to EIA’s Natural exporter of gas to Canada for much of the year. supply and
Gas Monthly. Imports from Canada, however, help support
Because of ample capacity on pipelines and in annual seasonal fluctuations in consumption, demand.
storage facilities in Canada, suppliers can rapidly particularly during the winter when cold tem-
increase flows, which the EIA said helps to stabi- peratures drive demand for heating.
lise the US market. Since 2012, imports into the eastern US
US pipeline exports of gas to Canada have have generally peaked in January or February
increased. In 2000, US exports averaged 2% of at around 2.1bn cubic feet (59 mcm) per day
all pipeline gas trade with Canada. In 2005, that and then again in July or August – when use
share increased to 9%. In August of this year, it of air conditioning is high – at roughly 989
averaged 24%. mmcf (28 mcm) per day. During the shoulder
Gas imports from Canada to the western US seasons – spring and autumn – net flows of
have expanded by 4.1% compared to the same natural gas reverse, flowing into Canada to
period in 2021. The border-crossing points at build inventories.™

Week 47 24•November•2022 www. NEWSBASE .com P7