TC’s NGTL Rejected in Bid for LNG Canada Toll Discounts

TC Energy Corp. has lost a bid to use a toll discount to gain high-volume pipeline traffic for liquefied natural gas (LNG) exports by the Royal Dutch Shell plc-led terminal under construction on the northern Pacific coast of British Columbia (BC).

The Canada Energy Regulator (CER) rejected the bargain rate sought by TC subsidiary Nova Gas Transmission Ltd. (NGTL) for shipments of up to 575 MMcf/d by one of the LNG Canada partners, Petronas Canada Ltd.

The CER issued the ruling ahead of the decision date set by NGTL’s deal to use its North Montney Mainline in northern BC. The contract allows Petronas to cancel its shipping commitment if the discount toll is not approved by Jan. 31.

[Want to know how global LNG demand impacts North American fundamentals? To find out,...