Nova Corp., Calgary, is tightening controls on its Alberta gas pipeline system and forecasting the possibility of supply shortfalls.
The company plans to implement a supply/demand balancing policy that will require shippers to prove they are putting as much gas into the system as they take out for customers.
The policy of daily checks on shippers is based on extensive talks with producers.
Nova's intraprovincial pipeline system distributes natural gas within the province and to border points for shipment to the U.S. and elsewhere in Canada.
The company forecasts that by the 1993-94 heating season the system's ability to deliver gas will fall short of peak demand by as much as 1 bcfd for 55 days.
Rising exports to the U.S. have placed increased demand on the Nova system. The company expects demand on its system to increase 2 bcfd by November 1993 because of expansion of pipeline systems to California, the U.S. Midwest, and Central Canada.
Low wellhead prices and a decline in gas development also are factors in potential supply shortfalls.
INCREMENTAL TOLLS
Meanwhile, Alberta Energy Minister Rick Orman criticized a recent decision by the California Public Utilities Commission to approve incremental tolls for gas pipeline systems.
Orman said incremental tolls increase the cost to shippers in the current environment and raises questions about economic viability of pipeline expansions. The CPUC decision upheld a previous 1990 ruling approving incremental tolls.
Pacific Gas & Electric Co., San Francisco, and its Pacific Gas Transmission Co. unit said submissions for system expansions were based on incremental toll policies,
PGT said it will continue with expansion of its Alberta-California pipeline system. The project, about 50% complete, is scheduled to take deliveries in November 1993.
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