OTTAWA, Oct. 5 /CNW Telbec/ - The Canadian Gas Association (CGA) reported today that large increases in natural gas production at a time of declining demand has resulted in the price of natural gas recently falling to a 7 year low. As a result heating costs for natural gas customers this winter are expected to be very favourable.
CGA's annual publication called Natural Gas Markets: Pre-Heating Season Update was released today and explains that North American natural gas prices are determined in a continental marketplace and that weather conditions, changes in production levels, and demand for electricity generation can all influence the supply/demand balance impacting the price of natural gas.
CGA also released "North American Natural Gas Supply: Increasingly Unconventional". This short paper examines the facts underpinning North America's long-term, abundant supply of natural gas.
"Abundant gas supplies, falling demand, storage levels at full capacity and forecasts of above normal temperatures this winter all mean that natural gas remains the lowest cost fuel choice for many heating, industrial, and power generation applications," said Mike Cleland, President and Chief Executive Officer of the Canadian Gas Association.
Most Canadian natural gas distribution utilities have adjusted their rates downward to reflect current spot market prices. Given that the price on bills lags the spot market, natural gas consumers can expect to benefit from the current low price environment at least over the early half of the upcoming winter heating season.
"Natural gas distribution utilities are required by regulation to pass on the exact natural gas commodity cost to customers without markup. Utilities also take steps to ensure that consumer energy bills are as affordable as possible," said Cleland. "These efforts include storing gas for use in winter months, hedging the price of winter supplies, and supporting energy efficiency programs."
The Canadian Gas Association (CGA) is the voice of Canada's natural gas delivery industry. CGA members are gas distribution companies, transmission companies, related equipment manufacturers, and other service providers involved in the delivery of natural gas in Canada. Visit www.cga.ca to read these two documents.
SOURCE Canadian Gas Association
For further information: For further information: Paula Dunlop, Director, Communications, Canadian Gas Association, (613) 748-0057 ext. 341, (613) 614-3280, firstname.lastname@example.org