You need to upgrade your Flash Player
Access Gas Services Inc.
Western Canada Market Information The Natural Gas Industry
The Natural Gas Industry PDF Print E-mail

There are a number of uncontrollable factors that affect the price of natural gas in both the short and long term.

The unpredictability of the weather and various economic events has
drastically affected the price of natural gas.

Weather-The most important factor in determining short-term price movement in North America is the weather, and in particular the effect of temperature on the need for winter heating and summer cooling. Prices tend to follow a seasonal cycle with higher prices in the winter and summer and lower prices in the spring and fall. El Nino and Hurricanes have also shown a significant impact on natural gas prices.

If prices at the pump increase, you can expect your natural gas bill to follow suit.
 
Cost of Alternative Energy Sources-Crude oil and natural gas prices tend to be inter-related, where natural gas prices typically track the fluctuations of the crude oil market. Recently, crude oil prices have experienced historical highs due to strong global demand and on-going disruptive circumstances in oil-producing countries. This has caused uncertainty in the marketplace regarding the dependability of the commodity supply. During these price fluctuations, many large energy consumers practice fuel switching, which is a temporary change from one fuel to another to reduce gas price increases. This activity increases the demand of natural gas, thus increasing its price.

You can also expect natural gas prices to increase with a strengthening
US dollar relative to the Canadian dollar.

Foreign exchange: The Canadian price of natural gas is derived from the US Nymex price and converted into Canadian dollars. Therefore, a weakening Canadian dollar will increase Canadian gas prices. A strengthening US dollar (compared to Cdn) or a weakening Canadian dollar (compared to US) typically means that Canadians will spend more money on energy. Take the following scenery for example: assuming the price of natural gas is $8 US/ Mmbtu and the US dollar strengthens from $0.84 US/Cdn dollar to $0.83 cents US/Cdn dollar, the Canadian price of natural gas would go from $9.03 Cdn/GJ (8/(0.84 x 1.055056)) to $9.14 Cdn/GJ (8/ (0.83 x 1.055056))* . That’s an increase of approximately $0.11 Cdn due to a penny increase in the US dollar compared to Cdn.

Note that 1.055056 GJ’s is 1 Mmbtu.
 

Testimonials

DJ Galvanizing Limited Partnership 

“As a large user of natural gas in our hot dip galvanizing process, DJ Galvanizing requires a gas company that is committed and dedicated to our needs. Access Gas Inc. has met this challenge and has been instrumental in providing market insight, pricing strategies, reports and account management."


G. Toldo-Senior Buyer, DJ Galvanizing Limited Partnership

Company Information

About Us
Testimonials
Association Memberships
Market Information
Energy Convertor
Careers
Contact Us

Choose your region:

Eastern Canada
Western Canada