Having our gas and selling it too : natural gas distribution in Atlantic Canada

This paper presented an overview of the gas industry in Atlantic Canada, its history and development, with particular attention to the future of natural gas in Atlantic Canada, market pricing and rationalized regulation. It also includes a primer on the economic forces behind the industry. A regulatory framework was recommended that will provide gas to the greatest number of consumers at the lowest possible price. The report also describes 10 popular misconceptions regarding how the region believes it can best benefit from natural gas. The report dispels the idea that the greatest benefit comes from consuming natural gas locally. Other misconceptions are that gas can be sold locally at discount prices and at a premium to export markets. It was emphasized that Atlantic Canada needs the gas as much as New England markets, but the investment by consumers in the United States are a big driving force for offshore gas development. The author emphasized that even if Atlantic Canada never consumes its own natural gas, the royalties, economic growth, economic diversification and a new addition to the energy mix will generate benefits much greater than those which could come from local consumption alone. The author also suggests that the lack of market power in Atlantic Canada means that gas-specific provincial regulations to protect the public interest are not required. It was suggested that a gas distributor should be chosen to build the infrastructure and attract customers. This paper demonstrated that the greatest benefit to the region will come from deregulating the distribution industry while realizing the full market value of the gas for its owners. 15 refs