Exports

Canadian natural gas exports took a sharp turn for the better in the opening month of the new sales contract year last November. Deliveries to the United States rose by 4.5% to 312 Bcf from 299 Bcf in November of 2001, according to records kept on the trade by Canada’s National Energy Board.

Canadian natural gas exports took a sharp turn for the better in the opening month of the new sales contract year last November. Deliveries to the United States rose by 4.5% to 312 Bcf from 299 Bcf in November of 2001, according to records kept on the trade by Canada’s National Energy Board.

As Canadian natural gas exports to the United States turn up again, reversing shrinkage experienced in the last contract year, supply questions are moving out of the realm of theory and into practical cases.

After a 15-year run of unopposed growth, exporters of Canadian natural gas have a fight on their hands on the East Coast. The New Brunswick government, frustrated by industry rejection of a new pipeline for Atlantic and central Canadians, has appealed for federal intervention against dedication of supplies from offshore of Nova Scotia to the northeastern United States.

After a 15-year run of unopposed growth, exporters of Canadian natural gas have a fight on their hands on the East Coast. The New Brunswick government, frustrated by industry rejection of a new pipeline for Atlantic and central Canadians, has appealed for federal intervention against dedication of supplies from offshore of Nova Scotia to the northeastern United States.

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

Despite record drilling and high gas prices, Canadian producersstill are not managing to boost production. TransCanada Pipelinesestimates Alberta field receipts were 2% lower than expected thiswinter and ended up being essentially flat with the 12.4 Bcf/drecorded in winter 1998-99.

Moving right along on the road to increased Canadian productionand exports, the provincial government in British Columbia hastaken the first step toward removing regulatory roadblocks bycreating a single agency to deal with the oil and gas industry andlocating it in producer territory. The B.C. government alsoanounced it has made peace with native communities on behalf of theindustry.