Canadian Gas Floods US Market, Undercuts Russian Prices
Canada's natural gas supplies have significantly contributed to a sharp drop in prices in the US region of New England. According to data from the US Department of Energy (EIA), wholesale prices for gas in New England fell below those in Russia, with an average difference of $27 per thousand cubic meters between April and July this year.
The EIA reports that pipeline connections linking Appalachia to the Northeast provide New England with access to relatively cheap gas. This year, New England has received record volumes of natural gas imports from Canada, with deliveries more than 2.5 times higher than in the same period last year.
As a result, the current wholesale price of gas in New England is $53 per thousand cubic meters. For comparison, the lowest stock quotes for the Sverdlovsk region in Russia exceed $98 per thousand cubic meters.