Canada's National Energy Board has granted tentative approval to previously denied applications for export of 533 bcf of natural gas to U.S. markets.
The contracts involved sales by Western Gas Marketing Ltd. and Shell Canada Ltd., both of Calgary, Direct Energy Marketing Ltd., Toronto, and Indeck Gas Supply Corp, Wheeling, Ill.
NEB originally ruled that the exports were not in Canada's interest on the basis of a cost-benefit analysis but agreed to review the decision. The board also dropped the controversial cost-benefit test that was challenged by the Alberta government and gas marketers and customers.
The Direct and Indeck deals also were originally rejected because the board was not satisfied that the companies had enough reserves under contract to meet sales commitments. That concern has now been satisfied.
Tentative approval was granted because each contract is still subject to a screening for environmental effects under new guidelines established by the federal energy department.
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