A natural gas pipeline rupture on October 9, 2018, in British Columbia has resulted in a sharp decline in U.S. natural gas imports from Canada, causing higher prices in the Pacific Northwest and logistical challenges for the pipeline network in the region.
U.S. imports of natural gas at Sumas, Washington, have averaged about 460 million cubic feet per day (MMcf/d) since October 18, according to data from Genscape. A week before the incident, U.S. imports at that location averaged about 930 MMcf/d.
Spot natural gas prices at the Northwest Sumas (at the British Columbia-Washington border) trading hub, which were trading at a discount to Henry Hub before October 9, reached $7.79/MMBtu on Monday, October 22, $4.58/million British thermal units (MMBtu) higher than Henry Hub.
Prices have since declined, closing yesterday (Wednesday, October 24) at $5.20/MMBtu, $1.85/MMBtu higher than the Henry Hub, according to Natural Gas Intelligence.
