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Natural gas producers are demanding government action in an open letter to Kenney



The directors-general of nine natural gas producers in Alberta posted an open letter to Prime Minister Jason Kenney, asking him to show "bold leadership" in supporting the production reduction plan to increase low gas prices.

The letter warns that the profitability of the natural gas sector is under threat, and the province faces a high probability of bankruptcy of enterprises, loss of jobs and a drop in investment if the situation is allowed to continue.

Presidents say their gas price problems have developed over many years, but they specifically point to what they called the failed federal regulation of the TC Gas Corp gas system. Nova Gas Transmission Ltd. in western Canada.

Manufacturers claim that there is no net loss in license fees

The letter proposes a solution whereby gas producers undertake to manage production on a voluntary basis when it is necessary to balance supply with the system's efficiency, which will not result in a net loss compared to the revenues from licensing fees in provinces, while respecting existing sales commitments .

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

The new government of the United Conservative party created the post of deputy natural gas minister when elected, and at the beginning of July announced a one-off tax relief program for shallow gas wells and pipelines, which is expected to provide approximately US $ 23 million in support to producers.


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