Net imports of natural gas from Canada have been falling for years. Rising shale gas production in the United States, especially in the Northeast, is key among several factors affecting this trend, the U.S. Energy Information Administration (EIA) said in a report.
For the first eight months in 2012, net imports from Canada fell by about 7%, to 5.7 billion cubic feet per day (Bcfd), from the same period in 2011. This resulted from high levels of U.S. natural gas production coupled with record-high inventory in underground natural gas storage. United States net imports for 2012 year-to-date accounted for around 8% of U.S. total natural gas consumption, the lowest level since 1992.
Total U.S. natural gas imports from Canada have been decreasing every year since 2007. However, the decreasing trend does not apply to each region of the United States. Each region behaves differently, depending on the locations of supply sources and pipeline systems.
Overall, U.S. exports to Canada have been growing significantly since 2000. Nearly all natural gas exports to Canada were delivered from the Midwest. The Vector Pipeline delivered most of the export volume to Canada. Expansions over the years allowed Vector to export more natural gas to Canada. Natural gas exports from the Midwest to Canada reached a record-high level in 2011, totaling 2.4 Bcfd, and have decreased slightly in 2012. The United States exports only a small volume of gas to Canada from the West and Northeast.
However, natural gas exports from the U.S. Northeast to Canada have been rising since the beginning of 2011. For the first eight months in 2012, U.S. natural gas exports to Canada from the Northeast increased by about 32% from 2011 to about 0.1 Bcfd. Tennessee Gas Pipeline and National Fuel Gas Supply expansion projects commenced service on November 1, 2012, totaling 0.57 Bcfd of export capacities to Canada through Niagara, New York. The completed projects will significantly increase U.S. natural gas exports to Canada from the Northeast.
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LNG World News Staff, December 2, 2012; Image: EIA