Handbags at Dawn over US pipeline exports

By Therese Robinson 15 February 2017
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TransCanada’s gas pipeline control room. The company is offering cheaper tariffs for local producers. (TransCanada) TransCanada’s gas pipeline control room. The company is offering cheaper tariffs for local producers. (TransCanada)

Competition to deliver gas to the Dawn Hub in Ontario – eastern Canada’s most active trading point – is hotting up. Calgary-based TransCanada is offering lower tariffs for new volumes on its Mainline system in a bid to protect producers in the Western Canadian Sedimentary Basin (WCSB) from their United States-based pipeline rivals. It is the second time in six months TransCanada has offered WCSB producers lower tariffs.

The aim is to give WCSB producers a competitive edge over US gas from the Marcellus and Utica shale plays, which is slated to arrive in Canada via the planned Rover and Nexus pipelines before the end of the year.

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