Natural Gas Intelligence
Bentek Finds Surprise: Canadian Gas Imports Flat, U.S. Exports Higher

Wednesday, November 28, 2007

U.S. natural gas exports to Canada are up 12.5% this year, adding on average more than 170 MMcf/d of gas flowing north versus a year ago, while Canadian imports -- forecast to be sharply down -- are flat, according to an analysis by Bentek Energy LLC.

Bentek's analysis of gas pipeline flow information discovered that an average increase of 170 MMcf/d has been flowing mostly into the Dawn Hub in Ontario via border crossing points at St. Clair and Ojibway, MI. Gas at these export points may be sourced from Great Lakes Gas Transmission or from pipes bringing gas north from the Gulf of Mexico and the Midcontinent, Bentek noted.

"The numbers revealed a couple of unexpected developments," said Bentek Managing Director Rusty Braziel. "First, Canadian imports are not down this year the way they were from '05 to '06. That is a change from what many folks in the industry have been saying. Second, the U.S. is shipping more gas into Canada, presumably to meet increased demand. The U.S. always delivers significant volumes to Canada, some sourced from U.S. production -- a portion of that comes across the border from Canada and then makes the trip back across to Canada. But that is not what is going on this year. In 2007 it is the U.S. production volume that is pushing the U.S. export numbers up."

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