GAS SALES COSTLY
EDMONTON (CP) Alberta's plan to sell natural gas at a reduced price to Eastern Canada to displace offshore oil may cost $500 million or more, Energy Minister MERV LEITCH said Monday.
The figure, which Leitch described as highly speculative is the difference between the current price of natural gas and an incentive rate Alberta has offered in an attempt to open up the Eastern market. The current Alberta proposal is to sell natural gas at 7% of the Toronto gate price for an equivalent amount of oil. The market price for gas now is 85% of the Toronto price for oil.