TRANSCANADA EAST EXTENSION TO BE SOUGHT

Canada's National Energy Board should limit issuance of new natural gas export licenses until the Atlantic provinces are connected to the national pipeline system, a provincial premier says. Premier Frank McKenna of New Brunswick told NEB he wants TransCanada PipeLines Ltd.'s system extended from Quebec City to Halifax, N.S. Cost of such a pipeline extension has been estimated at $800 million to $1 billion. McKenna plans to seek aid from Ottawa for the project.

March 11, 1991

2 min read

Canada's National Energy Board should limit issuance of new natural gas export licenses until the Atlantic provinces are connected to the national pipeline system, a provincial premier says.

Premier Frank McKenna of New Brunswick told NEB he wants TransCanada PipeLines Ltd.'s system extended from Quebec City to Halifax, N.S. Cost of such a pipeline extension has been estimated at $800 million to $1 billion.

McKenna plans to seek aid from Ottawa for the project.

The New Brunswick premier said Atlantic Canada is frustrated because its energy needs are met by imported oil while gas exports to the U.S. increase. So New Brunswick will oppose future export approvals.

"We do not think it is fair that natural gas be exported to the U.S. for American consumers when other Canadians don't have access to the same gas," he said.

Canadian Petroleum Association Vice Pres. Hans Maciej said a pipeline extension was studied in the late 1970s and early 1980s and found to be uneconomic.

"It didn't make any economic sense," Maciej said. "The Atlantic market is too small to support the cost of a $1 billion line. It would have to be heavily subsidized."

TransCanada said it is interested in all new markets where they make economic sense, but an extension would not be commercially viable at current natural gas prices.