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.

Just Posted

Village of Gadsby residents will vote on possible dissolution of village

Municipal Affairs conducts vote on Nov. 13th, 14th

Trudeau has won the most seats — but not a majority. What happens next?

Trudeau will have to deal with some of the implications of Monday’s result

LIVE MAP: Results in Canada’s 2019 federal election

Polls are now closed across the country

Federal election saw 66% of registered voters hit the polls across Canada

Roughly 18 million people cast their ballots, voting in a Liberal minority government

VIDEO: Is the stethoscope dying? High-tech options pose threat

World-renowned cardiologist believes the device is just a pair of ‘rubber tubes’

Alberta education minister releases new guidelines for school seclusion rooms

Adriana LaGrange says the new guidelines take effect on Nov. 1

United Conservatives to continue with NDP’s Alberta petrochemical credit program

Decision means the end of a $440-million loan guarantee announced by the NDP last January

Alberta finance minister says first budget to attack spending, not services

Premier Jason Kenney’s government has stressed that funding to health, education will be preserved

Calgary man found guilty in grandson’s death appeals manslaughter conviction

Allan Perdomo Lopez wants to challenge the nine-year prison sentence he was given last month

VIDEO: Chill with polar bears through an Arctic live cam

Cam reopens just ahead of Polar Bear Week

Wetaskiwin man allegedly flees police, faces numerous charges

Wetaskiwin RCMP and Camrose Police Service make arrests following alert from Edmonton Police Service

Mounties charge four people after protest at Alberta turkey farm

Three adults and 16-year-old girl charged with break and enter to commit mischief

Most Read