TC Energy Corp said its unit has reached a settlement with customers to reduce toll on the western part of its Canadian Mainline pipeline, making it cheaper to transport gas, and asked the Canada Energy Regulator for its approval.
The pipeline operator said the six-year settlement agreement sets tolls for separate segments of the Canadian Mainline, including a 20% reduction from existing tolls on the western portion of the system.
Western Canadian producers have been struggling with low gas prices amid over production and stiff competition from unconventional U.S. shale production.
The Canadian Mainline primarily transports Western Canadian Sedimentary Basin natural gas for delivery to markets in Eastern Canada and the United States.
TC Energy’s unit, TransCanada PipeLines Ltd, has requested for the approval of the settlement before terms come into effect in January 2021.
(Reporting by Shanti S Nair in Bengaluru; Editing by Shounak Dasgupta)
