Natural gas producers demand government action in open letter to Kenney

The letter warns that the viability of the natural gas sector is in jeopardy

The CEOs of nine Alberta natural gas producers have released an open letter to Premier Jason Kenney asking him to show “bold leadership” in supporting a plan to restrict production to boost low gas prices.

The letter warns that the viability of the natural gas sector is in jeopardy and the province faces a high likelihood of corporate failures, job losses and falling investment levels if the situation is allowed to continue.

The CEOs say their gas price problems have developed over many years but point specifically to what they call failed federal regulation of TC Energy Corp.’s Nova Gas Transmission Ltd. gas pipeline system in Western Canada.

The letter proposes a solution in which gas producers commit to manage their production on a voluntary basis when needed to balance supply with system capacity, resulting in no net loss to provincial royalty revenues while honouring existing sales commitments.

The letter is signed by CEOs of companies producing about two billion cubic feet per day of natural gas, including Jupiter Resources Ltd., Bellatrix Exploration Ltd., Peyto Exploration & Development Corp., Advantage Oil & Gas Ltd., Paramount Resources Ltd. and Bonavista Energy Corp.

The new United Conservative Party government created the position of associate minister of natural gas when elected and, in early July, announced a one-time tax relief program for shallow gas wells and pipelines that is expected to deliver about $23 million in support for producers.

“It is imperative that the government of Alberta intercedes as the viability of the Alberta natural gas sector is in jeopardy and, on our current trajectory, the consequences will be dire for the many Albertans that rely upon the natural gas sector directly and indirectly to support their communities,” the letter sent late Tuesday reads.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Sylvan Lake residents asked for input on IDP final draft

An open house was held for the Sylvan Lake IDP Nov. 20 at the Senior’s Centre

Small farms would not need work place insurance under proposed bill

Bill 26, Farm Freedom and Safety Act, was introduced by Minister Devin Dreeshen Wednesday

Chinook’s Edge and RDCRS school boards facing upwards of $2 million shortfall

Insurance increases and funding cuts have caused shortfalls for local school boards

Giving Tree back in Sylvan Lake for its ninth year

The Friends of Bethany volunteers hung the tags on the Giving Tree in Shopper’s Drug Mart, Nov. 19

Sylvan Lake students attend youth summit on conservation

Four HJ Cody students attended the Canadian Rockies Youth Summit in Jasper, Nov. 15-17

VIDEO: ‘Climate emergency’ is Oxford’s 2019 Word of the Year

Other words on the shortlist included ‘extinction,’ ‘climate denial’ and ‘eco-anxiety’

RCMP find burned out vehicles near Pigeon Lake

Wetaskiwin RCMP Recovered Numerous Stolen Vehicles in Pigeon Lake Area

Millet gas station robbed, worker bear sprayed

Wetaskiwin RCMP Investigate Armed Robbery, Seek information and ID Suspect

Environmental group’s lawsuit seeks to quash ‘anti-Alberta’ inquiry

UCP launched inquiry into where Canadian environmental charities get their funding

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Teen developed ‘popcorn lung’ due to vaping: Ontario doctors

Boy went from being in perfect health to being on life support after just five months

Woman calls 911 to say she was late for train, asks Ontario police for ‘emergency ride’

Peel Regional Police received more than 180,000 improper calls so far this year

Infants more vulnerable to measles than previously thought: Canadian study

Babies typically don’t receive the measles vaccine until they are 12 months old

Most Read