March 22, 2022, Calgary, Alberta (GLOBE NEWSWIRE) —The Commission de régulation of Canada has announced that NOVA Gas Transmission Ltd. (NGTL) has applied for proposed corporate transportation-related services and related toll collection methods. From the North Montney Main Line in northeastern British Columbia to the proposed Willow Valley Interconnect delivery point. The Commission has found that toll methodologies result in fair and unreasonable tolls. The Commission approved NGTL’s request to designate Willow Valley Interconnect Delivery Points as Group 1 Delivery Points, citing the overall benefits of the designation.
On January 19, 2022, the Commission announced the decision with a reason to comply because NGTL requested a prompt decision.
In May 2021, NGTL applied to CER for a new service from PETRONAS Canada Ltd. This service links the North Montney Main Line with the Coastal GasLink Pipeline (CGL) at the Willow Valley Interconnect Delivery Point. From here, natural gas is transported by CGL pipeline to the LNG Canada Export Terminal in Kitimat, British Columbia.
Service tolls are designed to cover only incremental costs, shifting the risk of cost overrun to other shippers on the NGTL system. The tariff design did not meet the cost-causality principle. This principle shows that users of pipeline systems bear the costs associated with transporting goods through the pipeline.
The Commission is also currently informed to determine if previously approved toll collection methods are still appropriate for existing NGTL systems even after gas supplies have begun at the Willow Valley Interconnect. Judged to be inadequate. This decision does not affect the current pricing structure for existing services on the North Montney Mainline.
- The CGL pipeline is under construction by TC Energy and is regulated by the British Columbia Oil and Gas Commission.
- The committee interviewed 22 interveners / participants in the hearing.
- CER is responsible for regulating tolls, tolls, and transportation for pipelines that cross states or borders.
- The Canada’s Energy Regulation Act It states that tolls must be fair and rational and must not be unfairly discriminatory, meaning that in general all shippers need to be treated fairly.
- Fees are the prices that the pipeline company charges for transportation and other services. Tolls help pipeline companies cover the costs of operating and maintaining their pipelines safely.
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CER provides a reason to deny transportation services linked to NGTL’s enterprises. TheCanadianBusiness Journal
Source link CER provides a reason to deny transportation services linked to NGTL’s enterprises. TheCanadianBusiness Journal