Alberta Considers Intervening in Gas System Constraints

The Alberta government is exploring options to address gas system constraints in the province, including establishing Crown corporations and imposing requirements on designated gas utilities. The report suggests that a new commercial Crown entity could construct, own, or backstop pipelines, while another option would enable more competition in gas infrastructure and delivery.

NDP Leader Naheed Nenshi has expressed concerns that these proposals amount to nationalizing the natural gas transmission industry. However, Premier Danielle Smith has stated that she does not plan to create a Crown corporation to manage the system, instead opting for private providers to meet demand.

The province's energy minister has said that governments routinely examine various policy and regulatory options when addressing complex issues, but have yet to make any decisions on these proposals. Meanwhile, TC Energy has invested over $15 billion in expanding its NGTL pipeline system, which has increased capacity by two bcf per day.

Chris Carlsen, CEO of Birchcliff Energy, has stated that more pipelines are needed to meet growing demand, while Phil Hodge, CEO of Pine Cliff Energy, believes that new infrastructure would be beneficial for data centre developers looking to access gas for power generation.