Canadian Regulators Deny Application for New Pipeline Service and Toll

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The National Energy Board (NEB) has denied an application from Maritimes & Northeast Pipeline (M&NP) for approval of a new pipeline service and toll.

M&NP had offered a “load retention” service and discounted rate to Irving Oil in exchange for a 13-year commitment to use the M&NP Pipeline to ship up to 68,579 gigajoules per day (GJ/d) of natural gas from the Canada/U.S. border in St. Stephen, New Brunswick to the Irving Oil Refinery and cogeneration facility in Saint John, New Brunswick. M&NP said it offered the service to Irving Oil in response to a competing offer from the Emera Brunswick Pipeline.

In a decision, released today, the NEB turned down the application saying that the application was premature. The NEB noted that the natural gas market in the Maritimes is facing a period of future uncertainty around current and future natural gas supply and markets. Also, the NEB did not make any determination as to whether the Load Retention Service Toll would be just and reasonable and not unjustly discriminatory under the National Energy Act.

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