Birchcliff Energy Ltd T.BIR

Bentek-3/18/2014 | 6:03 AM

[fergus2]

Canadian Observer - TransCanada deliveries to Great Lakes rise with Dawn basis

TransCanada deliveries at the Emerson II interconnect with Great Lakes pipeline rose in Monday's I2 cycle to 1 Bcf. Deliveries for the evening ...cycle also are at 1 Bcf for Tuesday's gas day, up 0.4 Bcf/d over the 30-day average. With Midwest demand normal the bulk of supply delivered at Emerson is flowing on the Great Lakes pipeline into Eastern Canada at the St. Clair interconnect, where deliveries into Canada stood at 0.9 Bcf for Tuesday's evening cycle. The increase in deliveries into Eastern Canada comes as Dawn's basis has risen from $0.72 over the weekend to $1.16 for Tuesday's gas day. The Dawn basis is $0.34 higher than Mich Consolidated CG basis and $1.18 above Nicor Citygate, both of which are key Midwest basis prices. The current net spread including variable cost to move AECO supplies to Dawn via Great Lakes pipeline is $1.22, which is a $0.46 move from Monday. It's likely that this spread will continue to remain strong for the rest of March as Eastern Canada will need to attract supplies due to the storage deficit at the Dawn facility.less

3/18/2014 | 6:03 AM