Canadians expect tight natural gas supply-demand balance for years

By OGJ editors
HOUSTON, Aug. 13 -- Canada is likely to experience a tight balance between natural gas supply and demand in the new few years, the National Energy Board said in a recent report entitled, "Looking Ahead to 2010—Natural Gas Markets in Transition."

NEB hosted eight roundtable sessions in six Canadian cities during February to examine how gas markets might evolve through the end of the decade. The sessions drew 90 people representing natural gas consumers, gas producers, regulatory agencies, government agencies, local distribution companies, pipeline companies, environmental groups, and various associations and service providers.

Participants expect a tight supply-demand situation until new supply can be developed or until sufficient adjustments can be made in new technology or energy consumption.

Among other things, they suggested that regulators, governments, and market participants emphasize market forces and pricing to facilitate a smooth gas market transition in coming years.

Upon reviewing suggestions from the roundtable sessions, NEB said it will seek to improve regulatory effectiveness and efficiency by working to develop coordinated, clear, and predictable regulatory processes.

NEB also said that it would coordinate with other energy information providers to ensure that Canadians have improved access to complete and timely energy information.

An independent federal agency, NEB regulates several aspects of Canada's energy industry to promote safety, environmental protection, and economic efficiency. It monitors energy commodity supplies in Canada and publishes market assessments.