Canadian Natural Gas Prices Poised for Breakout as LNG Sector Finally Booms

The Canadian natural gas market is on the cusp of a new era as LNG Canada’s first cargo makes its way toward South Korea and three more export terminals are in advanced development, setting the stage for supply, demand and prices to rise.

“The emerging LNG industry could transform Canada’s west coast into a significant energy export hub – one that supplies secure energy to our trading partners and fuels economic growth at home,” said CEO Lisa Baiton of the Canadian Association of Petroleum Producers.

Western Canadian natural gas prices have for years traded below Henry Hub in the United States, which has become the world’s largest LNG exporter. Prices have continued to flounder. Robust production, a lack of pipeline capacity, wavering U.S. import demand and seasonality have all combined to hold prices back.