Alberta Ruling Out Crown Corporation for Natural Gas Amid Cost Concerns

The Premier of Alberta, Danielle Smith, has stated that creating a Crown corporation for natural gas is 'unlikely' after a leaked report. The report, which was released recently, estimated the cost of creating such a corporation to be between $53.9 million and $162.6 million.

However, building a new major natural gas pipeline could have a price tag in the billions. Smith pointed out that the issue lies with Calgary-based TC Energy, which owns and operates much of Alberta's natural gas transmission infrastructure. She described it as a 'monopoly.'

The report states that Nova Gas Transmission Ltd., owned by TC Energy, is expected to be at full capacity until 2029 with limited plans to expand after 2030. It also notes that TC Energy does not want to invest in further capacity unless they receive returns on investment similar to those of their projects in the United States.

Smith stated that it's an 'active conversation' and that she has met with TC Energy leadership and other private sector companies. She believes there's enough private sector interest for further development, making a Crown corporation unlikely.