Natural gas markets have fallen recently due to a combination of warm weather and a preemptive increase in production to feed the new LNG terminal in Kitimat, BC. Although the new terminal is not yet online, we do see a month-over-month increase in the markets as shown in the graph below.  

Essentially, we have a supply glut on our hands, and therefore, the market price for natural gas supply in Western Canada has nose-dived in comparison to both the year-over-year and month-over-month pricing lines in the graph below.

However, we are not sure how long the warm weather will hold, as we are in a La Nina weather pattern which typically means a cold winter for our area. Additionally, we do not know when the excess supply will be moved into LNG production. We do know that Kitimat is slated to start ramping up production soon, with the first shipment of liquified natural gas leaving the terminal by mid-2025.

With so much unknown, we do not know how long this strategic buying opportunity will be present.

We realize that many business costs are on the rise. You can mitigate your risk by locking in a small increase now, rather than waiting and hoping prices won’t continue to increase.

Today, Connect Energy can lock in a rate of $0.1339/m3 (approx. $3.39/GJ) for a one-year term and a rate of $0.1434/m3 (approx. $3.63/GJ) for a two-year term, both starting November 1, 2025. Or you can choose to lock in a rate of $0.1655/m3 (approx. $4.19/GJ) for a five-year term.

Once you have made your selection below and clicked the submit button, you will receive a renewal letter to sign from Connect Energy via PandaDoc.

If you have questions or want to discuss your natural gas supply options further over the phone, please give us a call at (306) 979-0490 or email info@connectenergy.ca. Thank you for your continued business.