October 11, 2018 / 6:46 PM / in a month

ICE to liquidate natgas futures at Sumas after British Columbia pipe blast

Oct 11 (Reuters) - ICE Futures U.S. Inc said Thursday that all open positions in the Oct. 11 Northwest Pipeline (NWP) Sumas Swing Future will be liquidated at their original trade price due to a lack of prices at that point after a pipe fire on Tuesday in British Columbia.

Sumas is a point on Williams Cos Inc’s Northwest Pipeline at the border between the Canadian province of British Columbia and Washington state.

The fire occurred near the city of Prince George in British Columbia’s northeast on a pipe owned by Canadian energy company Enbridge Inc that transports gas to customers in British Columbia and the U.S. Pacific Northwest.

The reduction of gas supplies after the pipe rupture caused gas utilities in British Columbia and Washington State to urge customers to conserve energy and resulted in the shutdown of three oil refineries in Washington state.

ICE Futures, which is owned by Intercontinental Exchange Inc , also said its board determined the exchange may liquidate open positions, at their original trade prices, in each subsequent expiration of the NWP Sumas Swing Futures contract that Platts does not publish a price for next-day gas flows for Sumas hub.

Platts is a unit of S&P Global Inc, which provides price data for the ICE contract.

In addition, ICE Futures said all trading in NWP Sumas Swing Futures contracts for all other October 2018 dates and NWP Sumas Index Futures for the October 2018 monthly contract shall be for liquidation only, until Platts resumes publishing a price for next-day gas flows for the Sumas hub.

Reporting by Scott DiSavino Editing by James Dalgleish

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