Agrium, CF protest proposed gas tolls in Canada

Ottawa — The Industrial Gas Consumers Association of Alberta (IGCAA), which includes Agrium Inc. and CF Industries Holdings Inc. as members, has participated in recent hearings before Canada’s National Energy Board where TransCanada Corp. proposes to increase its tolls for gas transmissions. More hearings are scheduled. IGCAA says TransCanada proposals would effectively transfer nearly C$500 million per year in downstream pipeline costs to Alberta system users from the pipeline’s other Mainline and Foothills Systems. The Mainline in particular has seen a huge drop in usage, due in part to competition from North American shale gas. IGCAA says its Alberta members would see the delivered cost of gas increased by $100 million per year and that this could go up by $200 million per year within the next decade. IGCAA said the future viability of the other lines should not be achieved by putting additional costs on the Alberta shippers. Natural gas producers have also weighed in on the side of the industrial users. To date, Agrium and CF, both Alberta nitrogen producers, have touted their natural gas price advantage in the province. However, any new tolls by TransCanada may eat into that advantage, and according to IGCAA dry up future industrial and/or nitrogen expansion plans for Alberta.