ABSTRACT

Access to the natural gas pipeline system is the largest single constraint for a gas producer. The North American transportation grid will be significantly expanded in the early 1990's. New pipeline projects have been proposed that will provide for increased shipments of Alberta gas to California, the U.S. Midwest, New England and Eastern Canada. The underlying causes of the current round of expansions include deregulation of natural gas markets, open access to interstate pipelines, and increasing market demand.

These expansions will have significant implications for NOVA. Expansion will be needed to satisfy the export demands of producers. The cost of this expansion will ultimately be reflected in a higher cost of service. New marketing opportunities for Canadian gas producers will be created as a result. Examples of the new opportunities include: enhanced oil recovery demand in California, electricity generation in Ontario and New England, and increased demand by local gas utilities in the Midwest. Canadian gas exporters will benefit from expansion of the North American pipeline network, increasing from 1.5 Tcf in 1990 to 2.0 to 2.2 Tcf by 2000. The anticipated growth in exports from deregulation in 1985 through to the late 1990's will be discussed.

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