Market Snapshot: Canadian volumes of natural gas in storage are at the highest level on record going into the winter

Release date: 2020-11-04

Natural gas production remains relatively steady in Canada, averaging approximately 15.5 billion cubic feet per day (Bcf/d) (438 million cubic meters per day (10⁶m³/d)) for the first seven months of 2020. Demand on the other hand is highly seasonal and increases significantly in the winter months when Canadians use more natural gas to heat their homes and businesses^Footnote 1. Natural gas producers and distributors use storage to manage these demand swings and balance the market. In the spring and summer and early fall, natural gas is injected into storage while, in the late fall and winter, natural gas is withdrawn from storage. The arrival of cold temperatures in November normally marks the transition from storage injections to storage withdrawals.

At the end of October 2020, natural gas storage inventories in Canada averaged 804.6 Bcf (22.78 10⁹m³). In western Canada, where the majority of storage facilities are located, inventories averaged 526.5 Bcf (14.91 10⁹m³). In eastern Canada, inventories averaged 278.1 Bcf (7.87 10⁹m³).

Figure 1. Canadian Natural Gas Storage Inventories – October 2020 Update

Going into the winter season, total Canadian storage is at its highest level on record. Steady natural gas production in western Canada this summer, combined with narrow price differentials^Footnote 2 between western Canada and eastern Canada, and United States markets, resulted in below average exports and high natural gas storage injection rates in western Canada. Canadian natural gas consumers will be well supplied with natural gas for the 2020/21 winter season.

Date modified:

2023-11-28