On April 6, 2016, OEB Staff issued their 2015 Natural Gas Market
Review Report (2015 NGMR Report). This Report is the
culmination of the OEB's third NGMR consultation. The main
finding in the 2015 NGMR Report is that Ontario's natural
gas market is facing uncertainty in terms of future demand, future
sources of supply and changing supply paths. In the Report's
conclusion, OEB Staff indicates that this uncertainty makes it
important to understand long-term market drivers and potential
resulting outcomes in order to properly evaluate any proposed new
long-term natural gas infrastructure commitments.
The stated goal of the NGMR process is to examine
ongoing developments and related issues in the North American
natural gas market and assist the OEB's consideration of any
potential impacts – including regulatory implications –
of such developments for Ontario's natural gas market. To
assist with the 2015 NGMR, OEB Staff commissioned and filed a consultant's report on current and
forecast North American and Ontario natural gas market conditions.
The Report, as well as comments from interested parties, was
considered during a one-day NGMR Forum in January 2016. Further
comments were filed after that date. All materials are posted to the OEB's website.
The 2015 NGMR Report summarizes the information
received during the 2015 NGMR process, and sets out OEB Staff's
observations and conclusions. Among other things, the Report notes
that gas price forecasts are now lower than in past years, while at
the same time future demand projections are less robust (in part
because of uncertainty around cap and trade). Stakeholder comments
focused in part on how the OEB should consider new applications for
long-term natural gas infrastructure in light of the uncertainty
around future gas demand, and the potential that non-conventional
approaches (such as CNG and LNG) may be used to meet some future
In the conclusion to the 2015 NGMR Report, OEB Staff appears to agree
with stakeholders that it would be useful to have "a common
understanding of long term market drivers and the potential range
of market outcomes related to them" in order to be able to
fully assess future applications for long-term natural gas
infrastructure. The OEB's cover letter that accompanied the 2015 NGMR Report indicates that fostering this
"common understanding" will be an objective of the next
NGMR forum. The cover letter also notes that the OEB's
soon-to-be-issued updates to natural gas distributor rate
application filing requirements (discussed in an earlier
post) are expected to include a requirement for applicants to
file longer-term plans to enable a review and assessment of
infrastructure investment plans over the revenue-planning term.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).