Summary 
The existing gas export pipeline infrastructure in Western Canada has an average annual capacity of 14.9 bcf/day (2005/2006). The current average annual utilization factor for these pipelines is approximately 83 percent.
The WCSB supply curve remains relatively flat requiring ever increasing new gas wells to offset the natural declines in production from existing wells and to counter the basin development trend towards lower initial production rates.
Indications are that within the next couple of years we will see production from the WCSB basin start to decline as the new well connections fail to offset the natural declines from existing wells. At the same time, the purchase gas requirement for the Oil Sands is anticipated to grow from the current 1 bcf/day to 3 bcf/day by 2015. Both of these situations will significantly impact the quantity of natural gas transported by the export pipelines, which will have the effect of increased tolls and lower producer net back value. The Mackenzie Valley Gas Pipeline and to a greater extent the Alaska Highway Gas Pipeline could correct this situation by utilizing this spare capacity on the existing pipelines, possibly leading to lower tolls and higher producer net back value. Questions!
• Will the WCSB system be able to handle the gas volumes when pipelines from the North are built? What are the options for transporting the Northern gas through Western Canada and into markets in Canada and the US?
• How much spare capacity will the WCSB system have for northern gas?
How will the capacity change with demand for natural gas in the Oil Sands?
• How much could the northern pipelines cost to deliver gas to Alberta and what could be the additional costs to transport northern gas from Alberta to the US markets.
• What are the likely tolls for the northern pipelines and the existing export pipelines?
• What could happen to transportation tolls if northern gas does not connect into Alberta?
Price: $5,000
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