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Solomon Announces Release of “Assessment of the TransCanada Mainline Long-Term Fixed Price (LTFP) Proposal” Report

November 22, 2016

Leading energy benchmarking and advisory services firm announces report release.

DALLAS, TEXAS - November 22, 2016 – Solomon announced the release of its “Assessment of the TransCanada Mainline Long-Term Fixed Price (LTFP) Proposal” report. This Microsoft® PowerPoint® assessment report provides insight, outlooks, opinions, and advice on the expected impact of the LTFP Proposal on basis and ultimately the Dawn–AECO/NIT spread with and without the potential uptake of the LTFP capacity. Drawing on a wealth of industry experience and encompassing the entire natural gas value chain, Solomon’s regional long-term natural gas price forecasts are based on an in-depth analysis of the fundamentals. The exclusive advice in these forecasts boosts client understanding of the dynamics of a rapidly changing North American natural gas marketplace and aids them in making long-term strategic business development and investment decisions.

“As shale and tight gas technology has grown and developed over the past decade,” notes Cameron Gingrich, Director, Gas Services at Solomon, “North America gas markets have moved from a supply-constrained to a demand-constrained world. As a result, access to economically accessible demand becomes of upmost importance to Western Canada producers looking to monetize their expanding resource base.”

Major conclusions from this assessment include:

  • Without a successful LTFP, average overall Western Canada production will be 1.1 billion cubic feet per day less during the 2018–2027 time period.
  • A positive uptake of LTFP capacity will provide the entire Western Canada market an incremental US $25 billion of revenue over the 2018–2027 time period.