Natural gas producers demand government action in open letter to Kenney

The letter warns that the viability of the natural gas sector is in jeopardy

The CEOs of nine Alberta natural gas producers have released an open letter to Premier Jason Kenney asking him to show “bold leadership” in supporting a plan to restrict production to boost low gas prices.

The letter warns that the viability of the natural gas sector is in jeopardy and the province faces a high likelihood of corporate failures, job losses and falling investment levels if the situation is allowed to continue.

The CEOs say their gas price problems have developed over many years but point specifically to what they call failed federal regulation of TC Energy Corp.’s Nova Gas Transmission Ltd. gas pipeline system in Western Canada.

The letter proposes a solution in which gas producers commit to manage their production on a voluntary basis when needed to balance supply with system capacity, resulting in no net loss to provincial royalty revenues while honouring existing sales commitments.

The letter is signed by CEOs of companies producing about two billion cubic feet per day of natural gas, including Jupiter Resources Ltd., Bellatrix Exploration Ltd., Peyto Exploration & Development Corp., Advantage Oil & Gas Ltd., Paramount Resources Ltd. and Bonavista Energy Corp.

The new United Conservative Party government created the position of associate minister of natural gas when elected and, in early July, announced a one-time tax relief program for shallow gas wells and pipelines that is expected to deliver about $23 million in support for producers.

“It is imperative that the government of Alberta intercedes as the viability of the Alberta natural gas sector is in jeopardy and, on our current trajectory, the consequences will be dire for the many Albertans that rely upon the natural gas sector directly and indirectly to support their communities,” the letter sent late Tuesday reads.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta reports 257 new cases of COVID-19

Central zone has 157 active cases

Sylvan Lake couple donates $850,000 to AACS

The donation will be put towards a new X-Ray machine for the facility

Update: Possible drowning at Pigeon Lake involved man and woman from Edmonton

Bodies recovered from Pigeon Lake’s northeastern shores.

134 new cases of COVID-19 on Friday

First day over 100 cases since July 31

Lacombe resident creates labyrinth near Breton

Marsha Duggan encourages others to use their imagination

Canada to match donations to Lebanon relief

Canada is directing all of its aid for this crisis directly to humanitarian organizations, not the Lebanese government

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

Oilers 50/50 raffle delayed as team resolves errors, offers refunds

Alberta fans who want to void any ticket purchases will have until noon Thursday

Who can dismiss the Governor General? A look at protocols and possibilities

The Governor General is appointed by the Queen, on the advice of the prime minister

Second phase of NHL draft lottery set for Monday

Each club eliminated from qualifying round has a 12.5 per cent shot at the No. 1 pick

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

13-year-old charged in death of boy, 10 in Maskwacis

The RCMP Major Crimes Unit have laid a manslaughter charge against a 13-year-old boy from Maskwacis.

‘Caught up in the frenzy:’ Oilers 50/50 draw breaking ticket sale records

Previous record was held by Toronto Raptors fans when a 50/50 raffle reached $2 million

Most Read