NEB Expects Increase in Canadian NatGas Deliverability from 2005 to 2007



The National Energy Board expects the average annual Canadian gas deliverability to rise from 478 million cubic metres (16.9 billion cubic feet) per day in 2004 to 491 million cubic metres (17.3 billion cubic feet) per day by 2007. The Board today issued an Energy Market Assessment entitled Short-term Canadian Natural Gas Deliverability 2005-2007. The objective of the report is to provide an outlook of natural gas deliverability from the Western Canada Sedimentary Basin (WCSB) and east coast offshore through to the end of 2007.

Board Chairman Ken Vollman said "while production of conventional gas in the WCSB is expected to decline slightly, the increase in production of natural gas from coal is expected to offset the declines and enable a small increase in gas deliverability."

Deliverability of natural gas from coal in the WCSB is expected to grow from eight million cubic metres (0.3 billion cubic feet) per day in 2005 to 25 million cubic metres (0.9 billion cubic feet) per day in 2007.

The Board expects that deliverability from Nova Scotia's Sable Offshore Energy Project will remain at approximately 10 to 11 million cubic metres (0.4 billion cubic feet) per day for 2005 and 2006 and to then briefly return to near its original production peak at 13 million cubic metres (0.5 billion cubic feet) per day in 2007 with the installation of compression facilities.

The increase in natural gas prices has led to record levels of drilling in Canada's natural gas exploration and production industry. The Board anticipates the industry will continue to maximize its efforts to increase production and expects the level of drilling to remain at very high levels. This high rate of activity will be necessary to maintain production levels.

The NEB is an independent federal agency that regulates several aspects of Canada's energy industry. Its purpose is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade. As part of its mandate the NEB monitors the supply of all energy commodities in Canada and publishes reports on energy, called Energy Market Assessments.