Tourmaline Halts Infrastructure Projects as Natural Gas Prices Fluctuate
Canada’s largest natural gas producer, Tourmaline, has taken a strategic step to curb new midstream infrastructure development until prices in the regional AECO benchmark rebound to approximately C$4.00/GJ. This decision reflects a broader effort to maintain supply discipline amid weaker market conditions.
Meanwhile, in the United States, natural gas futures have clawed back above the $3.00/MMBtu threshold, recovering from an early sell-off. The reversal was driven by pipeline outages and anticipated cooler weather, which provided support against a backdrop of otherwise loose fundamentals.
In Southern California, spot natural gas prices defied broader market trends by rising due to pipeline constraints and lingering heat. The SoCal Citygate premium has widened to its highest level in three weeks, signaling sustained regional demand.
Looking ahead, an October heat wave is expected to further boost natural gas demand in California, potentially extending the current price rally. Additionally, the third Seligman C compressor station outage since August has lifted the SoCal premium to Waha above $1.80, adding to market volatility.