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Gas Supply and Demand

These are my general notes on recent events. Contact me for details

Nov 2002

Western Canada storage is at 188.6 Bcf (88.5% of capacity) significantly higher than same time last year.

US production decline expected to drop 7% in 2002 - from 52 Bcf to 47 Bcf/d. No significant supply relief until LNG imports or MacKenzie Delta Pipeline built.

Ladyfern - max production 700 Mmcf/d in mid 2001. Expected to decline to 100 Mmcf/d by end 2003.

Dec 2002

Chevron-Texaco planning LNG receiving facility on Gulf Coast (800Mmcf/d increasing to 1.6Bcf/d).

Canada's Natural gas exports down 4.9% in first 10 months of 2002 (3.07Tcf vs 3.23Tcf).