ABSTRACT
This chapter reviews the history and structure of the Canadian natural gas industry, the road to deregulation, and the new Agreement on Natural Gas Markets and Prices. It outlines some of the issues and problems that lie in the wake of deregulation. In the spirit of deregulation, the governments agreed to an early and all-encompassing review of the role and operations of interprovincial and international pipelines engaged in the buying, selling, and transmission of gas. The chapter examines domestic natural gas sales; direct gas sales in domestic markets; export volume constraints; export pricing, and export licensing and contracts. Effective November 1, 1986, the prices of all natural gas in interprovincial trade will be determined by negotiation between buyers and sellers. Most important, deregulation of natural gas in the US and Canada will likely lead to a North American natural gas industry.
