Gas prices climb as colder weather increases demand

Alberta power settles this week were volatile – with hours between $29/MWh-$836/MWh. With thermal generation offline and the tieline outage, many hours were constrained for supply. The week averaged $107.82/MWh, 37% higher than the week prior. The forward curve continues to move around, increasing with higher settles and the end of the year nearing. Gas prices also climbed this week with colder weather increasing demand. Price averaged $2.49/GJ.

The forward curve has moved above the $3/GJ mark for the remainder of the winter contract. The biggest news this week which made headlines was Cenovus is set to acquire Husky. The acquisition is expected to close in Q1 2021 and shows the importance of scale in these challenging times.