23 Drillers Sign Up to Complete Against M-U via TransCanada Pipe

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TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October, TransCanada launched an open season to lock up customers for the new, lower-priced option. The open season was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada rejiggered the terms being offered and reopened the open season. This time it worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). Thanks to a filing TransCanada has made with the Canadian National Energy Board (NEB), we now know who has signed up to use the lowball service from Canada’s West Coast to Ontario. Some 23 Canadian drillers, with some big names in the list, are waiting to use the service. TransCanada is begging/pleading/cajoling the NEB to issue a final approval–so TransCanada and these drillers can preemtively strike a blow at the cheap natgas that will come to the Dawn Hub in Ontario once Rover and NEXUS are built. Below is the list of 23 that plant to go head to head with cheap M-U gas…

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