ALBERTA SETS DEADLINE FOR GAS PRICE ACCORD

The Alberta government has given gas producers and their California customers until Aug. 15 to complete price negotiations on a new contract. The government agreed to grant a 15 day extension on talks because it said the parties were close to agreement. A supply pool of 190 Alberta producers last week was considering a fourth offer from Alberta & Southern Gas Ltd., Calgary, buying agent for Pacific Gas & Electric Co., San Francisco.

Aug. 12, 1991

The Alberta government has given gas producers and their California customers until Aug. 15 to complete price negotiations on a new contract.

The government agreed to grant a 15 day extension on talks because it said the parties were close to agreement.

A supply pool of 190 Alberta producers last week was considering a fourth offer from Alberta & Southern Gas Ltd., Calgary, buying agent for Pacific Gas & Electric Co., San Francisco.

Alberta & Southern offered an average $1.55 (U.S.)/Mcf in a 1 year gas purchase contract, compared with a current price of $1.80. PG&E buys 750 MMcfd to 1 bcfd of gas from Alberta producers.

A majority of producers representing 60% or more of volumes is required for contract approval.

Industry sources expected the new offer to be accepted.