CANADIAN GAS EXPORTS PREDICTED TO JUMP

Canadian natural gas sales to the U.S. for cogeneration plants will double by 1996, the international gas division of Canada's energy department predicts. The agency said gas sales of $330 million (U.S.) in 1992 to 16 new plants will jump to $760 million (U.S.) by 1996 with contracts projected for 21 more power projects. Alberta gas producers now have 17% of the new market for cogeneration in the U.S., and market share is expected to rise to 30%.

July 5, 1993

2 min read

Canadian natural gas sales to the U.S. for cogeneration plants will double by 1996, the international gas division of Canada's energy department predicts.

The agency said gas sales of $330 million (U.S.) in 1992 to 16 new plants will jump to $760 million (U.S.) by 1996 with contracts projected for 21 more power projects. Alberta gas producers now have 17% of the new market for cogeneration in the U.S., and market share is expected to rise to 30%.

New gas sales, mainly in the U.S. Northeast, are to supply fuel for nonutility power generators. The energy department said the market could expand to the U.S. Northwest, Midwest, and Southeast and even Mexico.

Alberta gas is currently shipped to seven cogeneration plants in New York state, two each in Rhode Island, Massachusetts, and New Jersey, and one each in Michigan, Virginia, and Vermont.

Currently on file in Canada are applications for regulatory approval of sales to 21 more plants planned or under construction in several U.S. areas, including the Pacific Northwest. Those projects are expected to increase volumes of Canadian gas under contract for U.S. cogeneration projects to 300 bcf/year in the next 2-3 years.