Henry Hub natural gas futures for January are trading at US$2.57/MMBtu as of 1:15pm EDT Thursday afternoon. Price volatility has persisted this week, with prices rebounding from a low of US$2.368/MMBtu on December 8th to today’s high of US$2.59/MMBtu. Changing weather patterns continue to add to price uncertainty, as long-range weather models are forecasting a return to cooler temperatures. The EIA estimated working gas storage was 3,848 Bcf for the week ending December 4th, 2020, following a withdrawal of 91 Bcf. This bullish report is higher than market expectations of 83-86 Bcf, helping to drive prices higher today. Storage levels are now 8.7% above year-ago levels and, relative to the 5-year average, 7.2% greater.

In Canada, prompt-month futures for AECO are trading at C$2.37/GJ, while Dawn is trading at C$2.74/GJ. Prices for both AECO and Dawn trended lower week-over-week by C$0.12/GJ and C$0.37/GJ, respectively. Canadian natural gas storage for the week ending December 4th, 2020, was sitting at 754 Bcf, after an overall withdrawal of 12.5 Bcf, down 1.62% from last week and up 29.2% from last year at this time.

In other energy-related news, the provincial government is quickly developing a Made-In-Ontario hydrogen plan as an area of post-COVID 19 economic recovery. In late November 2020, the Ontario government released a discussion paper titled Ontario Low-Carbon Hydrogen Strategy, that highlights its plans to use hydrogen to reduce the province’s carbon footprint. Last month Enbridge announced a $5.2M project whereby renewable hydrogen will be blended into the natural gas network serving 3,600 customers in Markham in 2021. While hydrogen can be used to decarbonize the economy, it also requires significant amounts of energy for its production. The government is currently seeking feedback on its hydrogen strategies from stakeholders by January 18, 2021. Stakeholders can submit feedback on the Environmental Registry of Ontario (https://ero.ontario.ca/notice/019-2709) or via email to (hydrogen@ontario.ca).

– Karyn Morrison, Energy Data Analyst / Grace Wilton, Energy Data Analyst

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