Canada’s National Energy Board concluded in a new report that the gas market in British Columbia is working well and both consumers and producers are making appropriate adjustments to higher gas prices. The Energy Market Assessment (EMA) found that natural gas prices in the province are now integrated with the North American gas market. In response to recent price increases, provincial consumers have reduced demand. Industries such as the forest products industry improved energy efficiency and increased their use of other fuels. Residential consumers reduced household consumption by improving energy conservation. In northeast British Columbia, producers have responded to higher prices by increasing exploration activity. However, the small size of the British Columbia natural gas market and the lack of a major storage facility near the Lower Mainland limit market flexibility in comparison with other major market centers, such as Alberta. Looking ahead, the potential exists to increase gas supply from northeast British Columbia and there is potential to find natural gas in other provincial supply basins, the NEB said. The EMA is available on the NEB’s website at www.neb-one.gc.ca.

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