Blocking Canadian gas imports would not serve the long-term interests of the United States said Martha Hesse chairman of the Federal Energy Regulatory Commission adding that the development of a freely open North American energy market should be encouraged. I firmly believe that the long-term interest of U.S. consumers would not be served by any attempt to promote a Made in America label for gas she said at an oil and gas conference. She said the commission recognizes the important role Canadian gas plays in the American market despite grumblings among U.S. domestic producers of the competition from north of the border. Recent figures show Canada shipped 2.48 billion Canadian dlrs worth of gas to the U.S. in 1986 down sharply from the 3.91 billion dlr total in 1985. But we do seriously recognize the importance in the years to come of the supplies of Canadian gas to U.S. markets she said. And even in the short term competition is generally a good thing she added. She said the commission is concentrating on improving the access to U.S. pipelines something that would be of great benefit to Canadian producers. Hesse said transportation of Canadian gas is already improving gas imports rising more than 21 pct in the first two months of the year. But Hesse declined to comment in detail on the controversial December order known as the as billed issue because it is the subject of a new hearing. The order which is being fought by Canada involves barring U.S. pipeline companies and consumers from paying certain Canadian shipping expenses. Hesse said the order was never intended as an attempt to extend the arm of U.S. regulations across the border. However a senior Canadian government energy official warned delegates the ruling could severely weaken Canadian gas producers. Besides the extra territorial effect there is the potential that Canadian consumers and producers may end up subsidizing the cost of transportation services originally incurred on behalf of U.S. customers said Robert Skinner an assistant deputy minister in Canadas energy department.
NORTH AMERICAN GAS MARKET SOUGHT BY FERC