What is “Station 2” ?
Station 2 in the trading point located at the physical intersection of many of the gas outputs from northern BC gas wells and processing plants. It is the point where gas either travels south down the Spectra Energy mainline, or east into Alberta and into the Alliance pipeline. Historically, physical gas at Stn 2 has traded at a slight discount or premium to the AECO monthly index. In addition, Stn 2 prices will respond to increases in the Sumas index. This effectively means Stn 2 pricing, as with AECO, will be driven by the Nymex futures contract for the upcoming gas year.