RE:RE:RE:RE:RE:RE:RE:RE:RE:Economics of WCSB vs Marcellus shipments to Eastern Canada?it is not TRP's responsibility to "supply the defecit". DAWN is owned by Enbridge. It is enbridge's responsibility to fill the storage. the storage at DAWN is filled by many suppliers using various transport services.
American producers use a different part of the mainline than WCSB producers. it's not either or.
Yasch22 wrote: Ceremony: TRP had 2 options to supply the deficit during that almost incredible spike in Dawn pricing.
1. Get supplements from the WCSB.
2. Get supplements from American producers.
All we know for certain is that they froze out the WCSB by raising the rates to a point where it would producers would have had to pay TRP to transport the gas to Dawn.
Possible reasons the TRP went with American producers instead.
-- they're closer.
-- TRP is obviously not interested in currying favour with anyone in the WCSB. As you have said repeatedly, TRP is a monopolist, and Canadian producers are afraid to offend. Conversely, I think TRP has a different relationship with American producers. They don't take kindly to bullies. American legislators have a lot of clout -- and they act on it when they think they're being treated unfairly. Americans also have a much more agile court system. They get unfairly treated; they sue.
So, do I have a memo from the TRP saying, "Hey guys, let's curry favour with our American friends, and poke another thumb into the whiners from Alberta" ? Um, no.... But what do the facts suggest?
On a day when WCSB producers could have signed contracts at the Dawn price -- with NO loss whatsoever to TRP, because they'd still be getting their $1.25/mcf for interruptible service -- the TRP said NO, we don't want it. Instead they took extra supply from other available sources.