Storage day is upon us, and as a result, the market was shocked back to reality. NYMEX futures for Oct-25 plummeted $0.16 USD/MMBtu or 5% to settle at $2.93 USD/MMBtu. EIA gas injections in the lower 48 totaled 90 bcf last week, resulting in the heaviest weekly injection since June. US gas storage now stands at 3,433 bcf, 4 bcf less than last year and 204 bcf higher than the 5-year average.   

In Alberta, NGTL announced a reduction in firm transportation for the east gate delivery zone, effective September 22. This is a crucial announcement as East Gate represents all gas flowing from Alberta across Canada on the TC mainline to Ontario. This restriction will further constrain AECO demand, causing AECO cash to return to free. It could also push up Dawn cash prices in the short term, as less gas can flow across the country. (PB)