The Alberta government implemented rules Mar. 1 to block new spot sales of gas to the California market.
Canada's National Energy Board has taken similar action (OGJ, Feb. 17, p. 28).
A spokesman for Alberta Energy Minister Rick Orman said the rules, covering operation of Nova Corp.'s intraprovincial pipeline system, were approved by the provincial cabinet.
Nova won't be allowed to ship short term gas destined for California before all commitments for long term purchases from a pool of Alberta suppliers are met.
California's Public Utility Commission now says it wants to explore the option of expanding pipeline capacity to California from other points. CPUC said it will look at the possibility of expanding Line 300 operated by Pacific Gas & Electric Co. from the Arizona border to a terminal south of San Francisco.
Meanwhile, rival pipeline groups continue a battle for the right to expand pipeline capacity from Alberta to California. Pacific Gas Transmission Co., a unit of PG&E, which currently operates the system, said a proposed expansion would provide $27.2 billion in incremental revenue to Canada.
The study for PGT and partners by Wright Mansell Research Ltd. said the PGT line is designed to carry 15% more Alberta gas than the rival Altamont project. It said the economic benefits would be 27-31% higher and $5.7 billion greater than Altamont over 20 years and $8.4 billion overall.
Altamont plans a line from Alberta to connect with Kern River Transmission System at Opal, Wyo. The Wright Mansell study said Altamont would deliver some Alberta gas to the U.S. Midwest and Rocky Mountain states, which would provide lower netbacks than the California market.
PGT and Altamont say they will have new pipeline systems operating by 1993.
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