- TransCanada (TRP +0.2%) says it is offering reduced tolls as low as C$0.82/gigajoule on its natural gas mainline from Alberta to Ontario if enough producers sign up to long-term contracts.
- The new toll would be a 42% cut from the current shipping price of ~C$1.41/gigajoule, and depends on customers signing up to 10-year contracts to ship at least two petajoules of natural gas on the line.
- TRP says the cheaper tolls are vital to allow companies in areas such as the Montney and Duvernay shale plays to compete with U.S. gas producers in eastern markets, as the boom in U.S. shale means more natural gas is flooding into the southern Ontario market and displacing traditional western Canadian supply.