Saskatchewan Issues Information Notice on Natural Gas Valuation for Pipeline Operators

Saskatchewan has issued Information Notice IN 2017-19, “Information Regarding Natural Gas Valuation for Pipeline Operators”, to outline how PST applies to natural gas for pipeline operators.  Natural gas is subject to PST when consumed in stationary internal combustion engines that are used in the compression of natural gas at pipeline compression facilities for processing, gathering, storage, transmission and certain other activities.  The Information Notice provides pipeline operators with an accepted method of calculating the value of natural gas that is consumed at their compressor stations, as well as the corresponding PST liability.  The new valuation method will be effective January 1, 2018.