• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 9 hours One Last Warning For The U.S. Shale Patch
  • 5 hours Modular Nuclear Reactors
  • 14 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 5 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 14 hours Chile Tests Floating Solar Farm
  • 5 hours Poll: Will Renewables Save the World?
  • 1 day China's E-Buses Killing Diesel Demand
  • 1 day Trump sells out his base to please Wallstreet and Oil industry
  • 1 day China's Expansion: Italy Leads Europe Into China’s Embrace
  • 5 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 2 days Trump Tariffs On China Working
  • 2 days Biomass, Ethanol No Longer Green
  • 24 hours New Rebate For EVs in Canada

TransCanada Applies For West-East Gas Shipment Clearance

pipeline system

TransCanada has applied with the National Energy Board of Canada for permission to start transporting natural gas from the west of the country to New Brunswick in the east, using existing pipeline infrastructure, CBC reports, adding the company has won the support of Enbridge and Irving Oil, the two largest gas retailers in New Brunswick.

According to the general manager of Enbridge, Gilles Volpe, the move could cut consumers’ gas bills by as much as 30-40 percent. The plan, Volpes said, “ gives access to more capacity, and more access to the Alberta-based natural gas. That natural gas is plentiful, of course, but it's also very stable from a price point of view."

Enbridge has already signed a contract for the deliveries of natural gas from Alberta to the East for 20.5 years beginning in 2021. Irving Oil has also signed a contract, with deliveries beginning this November.

"EGNB [Enbridge Gas New Brunswick] does not have access to local supply, nor local natural gas storage facilities to meet its franchise needs at this time and considers [gas from the west] as a valuable asset in meeting the needs of Atlantic Canada long term," said Volpe.

Previously, New Brunswick got its gas from offshore fields in Nova Scotia, but production there was shut down last year, leaving Alberta as the natural replacement for supplies of the fuel.

TransCanada’s idea to use existing pipelines to ship gas from the West to the East comes after the company dropped its plans for the Energy East pipeline that would have shipped Alberta crude oil to the east.

The company cited regulatory tightening as reason for its decision to give up Energy East. Environmentalist opposition to any new pipeline projects also helped tip the scales against Energy East. But the decision has opened up spare capacity that could be used to transport gas and keep its price low enough to make it competitive.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on February 20 2019 said:
    They need gas during those winters up there.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News