The National Energy Board (NEB) will be gathering information from key gas industry players in the Maritimes region over the next few months in preparation for two public reports on the functioning of the Atlantic Canadian gas market. The board also plans to publishing data gathered for the reports on a monthly basis from gas export license holders. It will collect data on domestic and export prices through surveys and publish the results in an aggregate format.

The gas market investigation follows a hearing in Fredericton last summer that considered an application by the Province of New Brunswick to establish new export restrictions on Scotian offshore natural gas. The province maintained that it is being made to pay premium prices for the small amount of gas production it has been allowed to purchase.

New Brunswick wanted the NEB to make the industry disclose all export plans and give potential Canadian consumers the first right to buy gas supplies that would otherwise go to the United States via the Maritimes & Northeast Pipeline, which is seeking a pipe expansion to 900 MMcf/d (see Daily GPI, June 10; Aug. 19).

The NEB ruled against the export restrictions, which potentially could have jeopardized millions of dollars in investments for supply development and transportation (see Daily GPI, Sept. 20). The board decided that it would be inappropriate to implement procedures that would unduly interfere with the normal operation of the natural gas market.

However, while it found no evidence of companies favoring U.S. export markets and discriminating against Canadian buyers, the NEB promised to organize a monitoring team and gather price and supply data and to improve price transparency in the region.

“In keeping with our commitment in the MH-2-2002 Reasons for Decision, the NEB has mobilized a team of technical specialists who will be responsible for the ongoing monitoring of the Maritime natural gas market. These initial meetings with buyers, sellers, producers, pipelines and government representatives are designed to discuss access to supply, market and transportation issues and to gather additional market data and information,” said Board Chair Ken Vollman.

The board expects to release its first report next spring.

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.