Canadian natural gas exports in 1991 set a record for the fourth year in a row, Canadian Enerdata Ltd. reports.
The Markham, Ont., consulting firm said shipments of gas to the U.S., Canada's only export customer for that fuel, jumped 16.8% in 1991 to 1.679 tcf. That volume replaced the previous record of 1.437 tcf exported just 1 year earlier.
Enerdata figures show the 1991 export performance increased Canada's share of the U.S. gas market to a record high of 8.7%, up from 7.7% in 1990, 7.1% in 1989, 7.0% in 1988, 5.9% in 1987, and, only 4.6% in 1986.
The performance positions Canadian exporters well for larger increases in volume and price as the U.S. gas market tightens and Canadian gas export capacity is increased in the mid-1990s, Enerdata said.
"All in all, Canadian gas exporters fared extremely well in an intensely competitive U.S. gas market in 1991. Furthermore, exports for 1992 are expected to increase a further 10% to 1.85 tcf due to continued strong demand for competitively priced Canadian gas and addition of export pipeline capacity to the U.S. Northeast and Midwest."
PRICE DECREASE
Enerdata pointed out the 1991 sales increase occurred as prices decreased to an average $1.86 (U.S.)/MMBTU, down 11 from the 1990 average. Because of depreciation of the Canadian dollar in 1991 against the U.S. dollar, the average price of exports in Canadian dollars fell 7.1% to $2.13/MMBTU from $2.29 in 1990.
The 1991 price compares "miserably" with the peak average export price of $4.94 (U.S.)/MMBTU ($6.08 Canadian) realized in 1982, Enerdata said.
The combined result of the increase in gas export volume in 1991 and the 7. 1% decrease in price was an increase of 8.5% in total revenue to $3.579 billion (Canadian), the fifth straight yearly increase but still below peak revenue of $3.853 billion (Canadian) in 1982.
Of total 1991 exports, 892 bcf or 53% took place under long term contracts at an average price of $2.36/MMBTU ($2.06 U.S.), compared with 924.9 bcf or 64% at $2.40/MMBTU ($2.06 U.S.) in 1990.
Short term or spot market exports in 1991 were 787.2 bcf at an average price of $1.87/MMBTU ($1.63 U.S.), up nearly 54% from 515.5 bcf at $2.11/MMBTU ($1.81 U.S.) in 1990.
SHIPMENTS BY REGION
Much of the increase in exports for 1991 continued to occur in the U.S. Midwest market. Exports through border points at Monchy, Sask., and Emerson, Man., most of which end up in the U.S. Midwest, increased 9.5% and 14.6% to 372.8 bcf and 340.2 bcf, respectively.
British Columbia gas exports to the U.S. Pacific Northwest through the Huntingdon, B.C., export point climbed 33.7% to 215.5 bcf in 1991 after falling 7.6% in 1990 to 161.2 bcf.
Gas exports through Kingsgate, B.C., mostly destined for California, fell 2.9% to 496.3 bcf in 1991 from 511.1 bcf in 1990. Long term sales dropped more than 10%, while short term sales which more than doubled to 68.1 bcf.
"The increase in short term sales reflects the moves by California to buy less gas under higher priced, long term contracts," Enerdata said.
Gas shipments to the U.S. Northeast through the Niagara Falls export point showed the largest percentage increase for the second year in a row: 98.4% to 178.3 bcf in 1991 from 89.9 bcf in 1990. Long term sales rose 73% to 83.5 bcf, while short term sales more than doubled to 94.9 bcf. The increase was due to more pipeline capacity to and from the Niagara Falls export point.
On a regional market basis, an estimated 29.6% of Canadian gas exports were sold to California in 1991, down from 35.6% in 1990, 37.0% in 1989, 38.8% in 1988, and 48.3% in 1987. The Pacific Northwest and Mountain regions accounted for 12.8% in 1991, compared with 11.2% in 1990, 15.0% in 1989, 12.4% in 1988, and 15.4% in 1987, the Midwest for 42.5%, compared with 44.3% in 1990, 40.0% in 1989, 39.6% in 1988, and 27.3% in 1987, and the Northeast for 15.2%, compared with only 8.9% in 1990, 8.0% in 1989, 9.4% in 1988, and 9.1% in 1987.
NO. 1 SHIPPER
Alberta & Southern Ltd., the Canadian gas buying arm of California utility Pacific Gas & Electric Co., lost its long standing ranking as Canada's No. 1 gas exporting company to Pan-Alberta Gas Ltd. in 1991.
A&S sold 339.5 bcf, down from 383.4 bcf in 1990. Pan-Alberta's export sales were 349.4 bcf, up from 346.3 bcf in 1990.
In total, there were 66 companies exporting gas in 1991, up from 49 in 1990, 38 in 1989, 37 in 1988, 28 in 1987, and only 19 in 1986.
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