The Financial Post reports in its Wednesday edition that EnCana, Tourmaline Oil, NuVista Energy and Peyto Exploration and Development, as well as TC Energy, have been meeting with Alberta government officials since the beginning of the year to work out a solution on how to fix the gas industry.
The Post's Geoffrey Morgan writes that the most fractious issue has been how to resolve a two-year fight between the gas producers and TC Energy. The fight centres over how TC Energy allocates space on its Nova gas system when certain lines are down for maintenance.
The producers say TC Energy limits access to storage during maintenance, which results in wild swings in the AECO benchmark and lower and/or unpredictable gas royalties for the province.
The battle has also exposed deeper divisions within the natural gas industry, with some producers demanding TC Energy make immediate changes.
After months of infighting, a truce between the producers and TC Energy has now been reached and, unnamed sources say, a proposal is before Dale Nally, associate minister of natural gas, that would allow producers to voluntarily scale back production during maintenance periods on TC Energy's pipelines in exchange for royalty credits.
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