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(Calgary Herald; July 17) - Struggling natural gas markets in Western Canada stand to take a further body blow this winter as infrastructure expansions bring northeast U.S. shale gas to Ontario, says a report from U.S. energy market analysts.

Canadian gas exports to the United States have been falling steadily since 2008 and the pain will intensify by almost half a billion cubic feet per day in November when two major pipeline expansions breach the border to bring U.S. shale gas to storage hubs in Ontario. "As more Marcellus gas can displace the Canadian supply that still does come into the northeast ... it will all but dry up Canadian imports," said Jennifer Robinson, senior energy analyst with Denver, Colorado-based Bentek Energy.

Up to 400 million cubic feet per day more of Canadian gas could be displaced at the Niagara import point by U.S. volumes, Robinson said July 17. "It's very cost competitive to take the Marcellus gas and serve these markets that Canadian imports have traditionally served," Robson noted. Net exports of Canadian natural gas to the U.S. dropped to 5.3 billion cubic feet per day last year from 7.1 bcf per day in 2010, according to data from the U.S. Energy Information Administration.

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