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The future of Trans Mountain & Canadian gas exports

A roller coaster week for the power market! Prices doubled week over week settling at $65.18/MWh. 20 hours settled
above $100/MWh, with the maximum settle of $536.36/MWh. During this hour, there was low wind generation and
derates on the ability to import, in addition to significant generation still offline for maintenance. Forward prices have
softened for the balance of 2018 with less volatility surrounding expected supply adequacy.

Gas settled 21% lower this week at $1.76/GJ. With reduced export capacity to export East, gas prices are expecting to
tumble to under $1/GJ as Alberta is oversupplied. Gas producers are desperate to export production, which led to
TransCanada seeing century long transport contracts executed on the last open season.

There was significant news coverage over Kinder Morgan’s decision to suspend spending on the Trans Mountain
pipeline. Premiere Rachel Notley has come forward saying that if investors begin to leave, Alberta would consider
taking a stake in the project. The Federal government is meeting today to strategize to ensure the project is successful.
In addition, the Federal government also released Bill C-69 for regulations around the Impact Assessment Agency,
which may negatively impact other proposed pipelines.