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3h ago

Western Canada Gas Prices Turn Negative as Producers Shut In Wells

Pipeline bottlenecks plus a slow LNG ramp are trapping supply in Alberta.

LNG Canada's flare stack burns above its LNG (liquid natural gas) export facility on Canada's Pacific coast in Kitimat, British Columbia, Canada August 18, 2025. REUTERS/Jesse Winter/File Photo
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A gas-lit flame burns on a natural gas stove on Tuesday, March 26, 2024.

Overview

  • AECO spot prices averaged minus $0.05 per mmBtu on Thursday after touching a record low of minus $0.18 earlier in the week, with the 2025 average at $1.03, according to LSEG.
  • Advantage Energy said its latest shut-ins surpass any previous curtailments, with CEO Mike Belenkie calling current prices the worst sustained levels the company has seen.
  • ARC Resources previously curtailed 75–200 million cubic feet per day at its Sunrise dry gas asset in the second quarter to avoid exposure to weak local pricing.
  • Maintenance and congestion on TC Energy’s NGTL system and the Great Lakes Gas Transmission network are restricting takeaway and trapping gas in Alberta, analysts report.
  • LNG Canada began exports this summer but its slow ramp has not absorbed the surplus, and RBN Energy sees temporary wellhead shut-ins potentially lasting through the end of the month.