Bill Gwozd
Manager, VP, Gas Services
Ziff Energy Group
Speaking in Session 605: Oil & Gas Transportation
Gas Transportation Toll Forecast from Western to Eastern Canada (GOXC11-047)
Industry dynamics are influencing transportation tolls to downstream markets. Growing supply from unconventional gas contrasts with declines in traditional Western Canada supply sources. New legislation for gas fired power generation, growth of gas requirements for Alberta oil sands projects, and proposed gas exports at Kitimat will result in less gas for long haul transport and will have a direct impact on transport tolls. The U.S. Ruby and Bison pipelines will push gas back into Western Canada with an impact on AECO-NIT basis. Supply growth in non-traditional areas such as the Marcellus Shale and in Quebec provides markets with enhanced access and choice. This spresentation provides a toll forecast for the next 7 years and outlines specific assumptions regarding supply and demand. Implications of the status quo on long haul transportation tolls are examined and a suggestion for reconfiguring the TransCanada Pipeline System is offered. These toll forecast can provide great insight for producers drilling economic analysis.
