TransGas, a gas pipeline company under the Saskatchewan’s government-owned SaskEnergy, offers allowances to oil and natural gas producers to supply their associated gas directly to another oil and gas producer to avoid flaring through the Associated Gas Conservation Program (AGCP). Under the SaskEnergy Act, producers in Saskatchewan are otherwise not permitted to deliver natural gas to third parties for consumption.
An oil and gas producer with an excess of associated natural gas would be eligible to participate in the AGCP if they meet the following criteria:
- Not currently connected to a TransGas receipt point;
- Currently flaring or venting gas, or anticipate flaring or venting due to a newly drilled well;
- Have made arrangements with a nearby consumer to use the gas.