Canada will boost gas exports to US by 50

Following an 8% increase in the Canadian Government's estimate of gas reserves in traditional producing areas, the government has approved natural gas exports of 3.75 trillion cu ft to the U.S. during 1980-87, a substantial increase over the 2 trillion cu ft previously approved for export. According to Canadian Energy Minister R. Hnatyshyn, the added exports will amount to approx. 40% of the 8.7 trillion cu ft sought for export by ten Canadian groups and will sell at the current price of U.S. $3.45/million cu ft, producing $13.2 billion in revenues through 1987 and providing Alberta gas producers with $100 million in 1980 and $500 million/yr thereafter. The Canada National Energy Board has estimated gas reserves in Canada's traditional producing areas at 71.8 trillion cu ft. According to A. Neielsen of the Canadian Petroleum Association gas committee and J. Porter of Independent Petroleum Association of Canada (in separate statements), the sale is a step in the right direction. Pan-Alberta Gas Ltd. has received permission for the export of 1.8 trillion cu ft through prebuilt sections of the Alaskan pipelines, but if this line does not proceed as scheduled, the Energy Board might eliminate the Pan-Alberta licenses.