Canadian Markets for Natural Gas

"I HAVE BEEN looking forward to addressing this particular audience about Trans-Canada Pipe Lines because you men, more than most, understand the problems of the pioneer. Trans-Canada Pipe Lines qualifies as a pioneer on two counts: it is certainly pioneering a completely new industry in Canada -the long-distance transmission of natural gas -and it has at least a few of the problems that are expected and normal to any pioneering venture.This morning, I’m going to try to give you a sketchy picture of our project and a brief report on its current status and our progress to date; and then a broad picture of Canadian markets for natural gas.The physical characteristics of the Trans-Canada Pipe Lines project have been discussed so often that I am not going to take the time today to quote a lot of statistics on pipe sizes, miles, tons of steel, etc. Suffice it to say that this project, estimated to cost approximately $350,000,000, will be the longest large-diameter gas pipe-line ever built anywhere.Let me try to paint a broad picture of this great national project, using only a few basic 'round' figures.First, it involves exploration for and development of the natural gas fields in Alberta and other provinces -the cost of which will run into hundreds of millions of dollars.Then comes the gathering, stripping, and cleaning of the gas before it can be delivered to Trans-Canada. This will cost close to $100 million.Next we have the Trans-Canada Pipe Lines project for transmission of the gas to Eastern markets -estimated to cost $350,000,000 during the first three to four years and making natural gas economically available to one-half the population of Canada."