Reduced capacity at the Gas Transmission Northwest (GTN) pipeline's Kingsgate point has significantly impacted Canadian natural gas imports into the Pacific Northwest. NGI's Kingsgate price dropped 22.0 cents to $1.120/MMBtu on Wednesday, the lowest since September 11, while Malin fell 7.5 cents to $2.995, widening its premium to Kingsgate to $1.875, the widest spread since August 27.
The GTN force majeure limited Flow Past Kingsgate capacity to 2.18 Bcf/d on Tuesday, down from 3.03 Bcf/d over the weekend, with scheduled volumes filling the line. This measure tracks natural gas moving from Western Canada into the U.S. via the GTN pipeline, serving as a key indicator of Canadian gas exports and supply availability for markets in the Pacific Northwest, California, and Nevada.
Upstream, NOVA/AECO C fell C28.0 cents to C$1.430/GJ, the lowest since September 14, while Westcoast Station 2 dropped C49.5 cents to C$1.135, the lowest since September 8. Since Friday, Kingsgate has fallen 44.5 cents, alongside a C47.0-cent drop at NOVA/AECO C and a C43.0-cent decline at Westcoast Station 2.
Malin's 48.0-cent gain since last Friday appears regional, matched by Northwest Sumas at 46.5 cents and Stanfield at 44.5 cents. Westcoast is also restricting T-South for its second round of tie-ins, with Station 2 South capacity at 1.16 Bcf/d on Thursday, down from the full 1.56 Bcf/d and as low as 1.01 Bcf/d during the October 3-5 period. Together, the two cuts leave about 1.1 Bcf/d of Western Canadian export capacity offline.
The forward market is not pricing in lasting tightness downstream of Kingsgate, even with maintenance still limiting GTN capacity. Malin’s November contract settled at $2.763 in Wednesday trading, 43.5 cents below Henry Hub’s $3.198 and wider than the 16.9-cent discount Friday, according to NGI’s Forward Look. When GTN last restored capacity on September 26, Mountain region imports recovered the same day.