Tourmaline Halts Investments as Natural Gas Prices Fluctuate
Canada’s largest natural gas producer, Tourmaline, has implemented a strategic pause on new midstream infrastructure investments until prices in the regional AECO benchmark rise closer to C$4.00/GJ. This move reflects the company’s commitment to supply discipline in response to current market conditions.
Meanwhile, natural gas futures in the U.S. have been volatile, clawing back above the $3.00/MMBtu mark amid pipeline outages and cooler weather forecasts. The prompt month contract reversed early sell-offs on Friday, supported by pipeline uncertainty despite a generally loose fundamental backdrop.
In California, spot natural gas prices defied broader market sell-offs over the weekend due to pipeline constraints and lingering heat. The SoCal Citygate premium reached its widest level in three weeks, with an October heat wave expected to further boost demand and support prices.
A third outage at the Seligman C compressor station (CS) on the El Paso Natural Gas (EPNG) pipeline lifted the SoCal Border Avg. spot price to $3.505/MMBtu on Thursday, marking a significant increase from late September levels.