Alberta Considers Legislation to Address Gas Pipeline Constraints

Alberta is considering solutions to natural gas pipeline constraints in the province, which could include introducing legislation to enable creating a new Crown corporation. This move comes as demand for natural gas increases due to LNG exports, electricity generation, and growing data centre requirements.

The key drivers of the problem are insufficient gas transportation capacity, lack of competition for such infrastructure, and federal regulatory oversight. The Nova Gas Transmission Line (NGTL) system is fully subscribed until 2029, with no future capacity confirmed beyond 2030, and speed to service is uncertain.

TC Energy has invested over $15 billion in expanding the NGTL system over the past decade, increasing its capacity by two billion cubic feet a day. However, more pipelines are needed as benchmark gas prices in Alberta trade well below other hubs in North America.