Explainer: Why Western Canada Has Some of the Cheapest Natural Gas in the World



Despite soaring global demand for natural gas, Canadian producers are struggling with volatile prices and deep discounts at Alberta’s AECO hub, one of the largest storage facilities in North America and where the benchmark price for Canadian gas is set.

In August the spot AECO price briefly turned negative, and this week producers Tourmaline Oil and Kelt Exploration Ltd said they temporarily cut production due to weak prices.