Due to an expected rise in Alberta’s prices, eastern Canadiangas buyers will save up to 25% off their delivery costs byswitching suppliers, once the major ongoing pipeline expansionsfinish, a study jointly prepared by Energy ERA (Calgary) and A.E.Sharp & Associates (Toronto) said. The multi-client study,which involved a comprehensive evaluation of the entire NorthAmerican natural gas marketplace and focused on the continentalNortheast, said the savings are expected to begin in the 2000contract year and last until at least 2005. The largest savingsyear will be when the Alliance opens in 2001.

According to the study’s results, gas from Alberta delivered viathe TransCanada pipeline is in serious danger of losing its titleas the least expensive west-to-east transportation option. “Theprice effects of the Alliance pipeline are expected to reverberateacross North America, and especially affect Alberta, Gulf Coast,Midwest, and Eastern Canadian spot pricing. The Alliance pipelineis expected to cause the largest price impacts of any of theproposed pipeline projects,” said John Voss, an A.E. Sharp andAssociates spokesman.

With the opening of Alliance in 2001, the study predicts a C$.40rise in Alberta prices. When this rise combines with the ongoingintegration and expansion of the continental market, KenVanderSchee, one of the study’s authors, said Eastern Canadian gasbuyers should seriously consider switching supply andtransportation companies

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