Ottawa grants pricing for fracturing sand coming from US.

The federal government grants Canadian oil. Furthermore, gas foreors a price reduction in the large amounts of sand that they import from the United States.

This sand is used in the hydraulic fracturing process to release resources trapped in shale formations that are. Nevertheless, difficult to access in depth.

It is one of the imported American products on which Canada imposed an surcharge in retaliation for the. Therefore, wave of customs duties imposed by President Donald Trump.

An opinion published Wednesday in the Gazette du Canada lists dozens of products for which a discount will be granted. Consequently, in particular the Siliceux and Sable Sable Sables. Similarly, The decree applies to sands imported before October 16.

This is great news for ussaid Gurpreet Lail. president and head of the management of the industrial oil ottawa grants pricing fracturing sand service group Enrva.

The retaliatory duties on the sand alone added $ 275 million a year to industry costs, she argued.

We work with very tight budgets. and it would have been a hard blow.

Ms. Lail welcomed the pressures exerted by the Prime Minister of Alberta, Danielle Smith, in this file.

The Canadian energy sector uses approximately 8 to 9 million tonnes of siliceous sand. and the latter must meet certain specifications, said Ms. Lail.

Most, around 6 million tonnes, comes from Wisconsin. The rest can be supplied in Canada, but Ms. Lail argued that regulatory obstacles were too numerous to allow sand producers to develop and meet the needs of industry.

We were simply not positioned so as to reverse the situation quickly. when the retaliatory duties entered into force.

Gurpreet Lail said that his group is still waiting to know if a discount will be granted for other imported goods that the industry needs, such as spiral tubes and drilling trepans.

In a impact study accompanying the decree published in the Gazette. The government said it received nearly 7,000 written observations during a period of public consultation on retaliatory rights offered earlier this year.

These public consultations […] confirmed the support of stakeholders with regard to these countermeasures as a necessary response to deal with customs duties. in the United Statescan we read in the document.

However. some stakeholders have said they were concerned about their ability to modify supply chains due to factors such as the absence or limited quantity of supply sources (shortage), or the requirement that certain products must comply with certification requirements, product ottawa grants pricing fracturing sand specifications or contractual obligations requiring that Canadian companies buy American products.

In special circumstances. for example when goods cannot be purchased elsewhere or it would seriously harm the Canadian economy, companies can be exempt from the payment of customs duties or be reimbursed for the rights already paid.

Previously. a six -month tariff was granted to the goods used in the manufacture, transformation and packaging of food and drinks in Canada, as well as to the imports used to support public health, health, public security and national security.

Vehicles have also been awarded. under the conditions for the maintenance of Canadian production and the realization of the planned investments.