AECO vs Henry HubI'm surprised (pleasently) at the strength of AECO pricing vs Henry Hub. I still believe Henry Hub price is not yet moving in unison with Asion & European LNG pricing. But certainly prices firmed up in September and early October.
I believe we will see large storage numbers for the remainder of October as mild weather dominates in the US. I believe we will see a storage number closer to the 5 yr average by the end of October. Maybe 100-200 BCF below normal.
LNG shipments from the US will continue all winter at elevated levels regardless of Asian & European weather as bot continents are desperate to refill storage was severly depleted. If the US sees any prolonged abnormally cold weather expect explosive pricing ocurr and a levelling up of Henry Hub and AECO pricing. The powder keg of gas pricing in the US exists. The question is simply... will there be a US weather event that lights the fuse?
This is certainly an exciting time for Natural gas producers. Go PNE & TOU