The following chart shows AECO natural gas prices:
SaskEnergy Incorporated First Quarter Report
March 31, 2011
Constraints of Existing Infrastructure
Despite the shift to horizontal drilling methods improving gas supply economics, getting gas to market has remained a major concern. Gas well drilling west of Saskatchewan has tended to move farther into north western Alberta and north eastern British Columbia; this has resulted in delivery infrastructure that is constrained due to lack of infrastructure. NOVA Gas Transmission Ltd. (NGTL) currently has a project before the National Energy Board which is intended to relieve this constraint by adding additional gas line and compressor facilities. SaskEnergy will continue to monitor this situation and take steps, where needed, to ensure access to a reliable source of natural gas throughout the process.
CONSOLIDATED FINANCIAL RESULTS
Consolidated Net Income (Loss)
June 30 Three months ended
(millions)
2019
2018
Change
Impact of fair value adjustments Revaluation of natural gas in storage Income before unrealized market value adjustments
$
12
$
6
$
6
(10)
(6)
(4)
(2)
12 12
(14) (12)
Consolidated net income
$
-
$
$
Excluding market value adjustments, financial results for three months ending June 30, 2019 are $6 million higher than the same period in 2018. The increase in net income is due to higher customer contributions relating to transmission customers and higher transportation revenue. The increase in customer load growth contributed to additional transportation revenue relative to 2018-19. Much of the load growth is the result of continued economic growth in the province, driven by expansion in the major industrial sectors of enhanced oil recovery and power generation. As natural gas production continues to decline, Saskatchewan increasingly relies on gas production in Alberta to meet its delivery requirements. This results in increased transportation utilization on the TransCanada Mainline system to import natural gas from Alberta. These increasing requirements have resulted in higher overall operating costs compared to prior year.
4
2019-20 FIRST QUARTER REPORT
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