Bulging Canadian storage sparks fears excess capacity could spill into US

Friday, June 08, 2012

While fears that US storage stocks will reach capacity appear to have died down after weeks of below-average injections, storage levels remain at record highs in Canada” where capacity could be reached in a matter of weeks, analysts said.

"The story in West Canada is that average daily injections are very low this year as Canada's supply/demand balance continues to tighten in response to the region's very high storage inventory numbers," said Andy Tillotson, an energy analyst with Bentek Energy, a division of Platts.

In Eastern Canada, Tillotson said, "April realized net withdrawals, and flows through St. Clair into southern Ontario are below average as Great Lakes flows across the border have declined by about [250,000 Mcf/d] compared to last year," he said.

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