Sunny skies this week has it feeling like summer and it feels like people are starting to use their vacation time to enjoy it. Prices remained low this week averaging $26.66/MWh. Supply remains abundant with some demand destruction across the province still affecting the Alberta Internal Load. There was movement in the forward curve this week with September trading up significantly. The intertie is expected to be offline for yearly maintenance and thermal outages are also expected for unit turnarounds.
AECO gas settled 11% higher week over week at $1.91/GJ. Storage levels remain consistent but with maintenance starting on Friday, there is a potential for lower receipts. Demand over the last week was ~0.5Bcf lower than this time last year, attributed partially to COVID-19 demand destruction and also cooler temperatures.
Demand for petrochemical products during COVID-19 has skyrocketed – the UCP launched the Alberta Petrochemicals Incentive Program to attract investment and expand the sector. Investment for the industry was over $250B in the US in the last 10 years, more than 10 times Canadian investment.