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Market Snapshot: Decreasing Canadian Natural Gas Exports to the U.S. Midwest and East Regions
Release Date: 2015-09-16
Rapid development of unconventional gas projects has increased U.S. natural gas production. For example, from 2007 to 2015, natural gas production from the Marcellus region increased from less than two billion cubic feet per day (Bcf/d) to over 16 Bcf/dFootnote 1. As a result, natural gas exports from Canada to the U.S. have been decreasing.
Between 2007 and 2014, Canadian exports to the U.S. East region decreased by over 65 per cent, from 2.82 Bcf/d to 0.95 Bcf/d. Exports from Canada to the U.S. Midwest region have also decreased, from 5.05 Bcf/d in 2011 to 3.90 Bcf/d in 2014.
Increased natural gas production in the U.S. has also led to pipeline modifications that have affected Canadian exports. For example, the Rockies Express Pipeline (REX) used to transport up to 1.8 Bcf/d of natural gas eastward, from production in the U.S. Rockies to markets in the Midwest. However, as production of natural gas in the U.S. East increased, the REX was modifiedFootnote 2 and now also moves natural gas westward from Ohio to Midwest markets. This pipeline modification has further increased competition in the Midwest for Canadian exports.
Figure Source and Data
Source: NEB Commodity Tracking System Statistics, Gas - Historical Summary by Region
Description: This chart shows annual natural gas exports from Canada to the U.S. Midwest and East regions from 2007 to 2014. Canada exported 5.05 Bcf/d of natural gas to the U.S. Midwest in 2007 and 3.89 Bcf/d in 2014. Canada exported 2.82 Bcf/d of natural gas to the East in 2007 and 0.95 Bcf/d in 2014.
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