NEB: Canadian natural gas exports to US have declined

Canada’s National Energy Board says exports of Canadian natural gas exports to the US have declined in recent years because of increased US gas production.

Canadian exports to the US East decreased by more than 65% in 2007-14, said NEB, citing 2.82 bcfd in 2007 and 0.95 bcfd in 2014.

Exports to the US Midwest declined to 3.9 bcfd in 2014 from 5 bcfd in 2011.

NEB said production in the US Marcellus region has increased to more than 16 bcfd from less than 2 bcfd in 2007 (OGJ Online, Feb. 2, 2015).

“Increased natural gas production in the US has also led to pipeline modifications that have affected Canadian exports,” said NEB, noting that the Rockies Express Pipeline (REX) used to transport up to 1.8 bcfd eastward from production in the US Rockies to markets in the Midwest (OGJ Online, Aug. 13, 2015).

“However, as production of natural gas in the US East increased, the REX was modified and now also moves natural gas westward from Ohio to Midwest markets,” said NEB. “This pipeline modification has further increased competition in the Midwest for Canadian exports.”

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