According to BMO Capital Markets Analyst Randy Ollenberger, the Canadian beaten natural gas market “turns the corner” a new era of higher prices.
He and his peers see new LNG export projects that promote higher prices of Canadian manufacturers for the coming year as demand exceeds supply.
The first presentation of liquefied natural gas (LNG) made by the LNG Canadian Terminal near Kintimat, BC, last week went to the storage and regasia terminal in Incheone, South Korea. Before that, the only Canadian export market was in the US through a pipeline.
The Shel -led by Shell Plc provides long -awaited access to higher Canadian gas prices in Asia.
“Long-term Canadian gas companies (and investors) are ready to benefit from several structural changes, including: LNG Canada, decreasing production in several major US pools and growing demand for Data Centers,” Oollenberger recently wrote to customers in a note.
‘[The] Canadian gas market [is] preparing to turn the corner. ”
The first phase of the LNG Canada will export from two processing facilities with a total capacity of 14 million tonnes per year (MTPA). The second phase in question would increase this. Meanwhile, two additional projects in Canada made their final decision to invest: Cedar LNG and Woodfibre LNG.
A new Deloitte Canada analysis announced on Monday will not fill in the current LNG export projects for four to seven years.
“This is likely to mean amplification of AECO benchmark, allowing Canadian manufacturers to achieve a more favorable value of their gas,” Deloitte Canada, a researchers of Deloitte Canada, led by Andrew Botterill, an energy, resource and industry.
“During this period, when production is rising to satisfy demand, natural gas prices should narrow the differential compared to Henry Hub, which lasts for several years as soon as the LNG Canada is exported.”
Canada is the fifth largest natural gas manufacturer in the world and the fourth largest world exporter.
2024. Manufacturers have faced difficult time as prices have fallen to the lowest level in more than 40 years. According to Canada statistics, higher production and storage, along with the weaker than expected winter demand, the price fell in the second half of the year.
Deloitte Canada sees that AECO prices in 2025 Average $ 2.20 for a million BTU compared to $ 1.39 in 2024. 2026 2026 According to the firm, AECO prices are expected to be $ 3.45 on average and $ 3.50 to $ 2032.