According to a new forecast from Deloitte Canada, Canadian natural gas prices could jump nearly 60% this year — marking the end of years-long discounts — as a new export terminal in northern BC begins shipping to global markets.

The report says the LNG projects will not only create more demand for natural gas companies — they will also likely lead to much higher prices.

That’s because producers are not drilling fast enough. At the current pace of drilling and investment, the report says it could take 4-7 years for Canadian producers to meet demand from LNG export projects already underway.

Read the Financial Post story here.

“There is significant market risk ahead for commercial users of natural gas in the months ahead,” observes Adrian Leusink, Regional Distributor for Wholesale Energy “We’re taking calls daily from business owners looking for advice and price certainty to lock down their own financial forecasts into Q3/Q4 and beyond."

Wholesale’s fixed rate guarantees, dedicated local support, and hedging strategies are attractive to many owners given the market volatility and predicted price hikes. Learn more about Wholesale’s price protection program to see if it makes sense for your business.