The stocks of Canadian companies with exposure to the natural gas market are higher this morning as the Polar Vortex drives up short term natural gas prices - with prices at some delivery points in North America reaching record highs.
For example, at the Transco Zone 6, a pricing point for New York City Natural Gas, spot prices climbed at high as US$90 per million BTU, up from $13.82 per mmBtu on Friday.
Natural gas prices in Canada, however, are not as buoyant. Toronto-area spot gas slipped 27 cents from Friday to $4.99 per mmBtu according to The Globe and Mail, and in Alberta, where most of Canada's gas is produced, the benchmark spot price was the equivalent of $3.94 per mmBtu. While not as high as U.S. prices, this price point in Alberta is about 40% higher than it was a year ago.
According to The National Research Council of Canada, about 38% of Canadian households are reliant on natural gas for heating.
The shares of most Canadian natural gas companies are seeing upside momentum on the weather, with most up just under 1%. Enbridge (ENB.TO, ENB) is up 0.7%, Suncor (SU.TO, SU) is up 0.9%. Of the others, Imperial Oil (IMO.TSE), and TransCanada Corp. (TRP.TO) are up in Canada, although TransCanada's U.S. listed Stock ( TRP ) was lower.
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