Innovative Solution Delivers Additional Natural Gas to Eastern Markets on Canadian Mainline
December 05 2018 - 7:30AM
News Release – TransCanada Corporation (TSX:TRP) (NYSE:TRP)
(TransCanada) today announced that it has secured 675,000
gigajoules (GJ) (630 million cubic feet) per day of new natural gas
transportation contracts from the Western Canadian Sedimentary
Basin (WCSB) on TransCanada’s Canadian Mainline. Its North Bay
Junction Open Season resulted in long-term, fixed-priced contracts
for service that will reach markets in Ontario, Quebec, the
Maritimes and the Northeastern U.S.
“We’re pleased to offer an innovative solution on our Canadian
Mainline that will benefit customers from Western Canada all the
way to the Maritimes,” said Tracy Robinson, executive
vice-president, Canadian Natural Gas Pipelines. “It helps WCSB
producers compete for market, benefits current customers through
greater use of existing capacity on the Mainline, and attracts new
customers in the Maritimes.”
The Canadian Mainline is a critical piece of energy
infrastructure that currently transports about 20 per cent of the
natural gas produced in the WCSB. “The success of the North Bay
Junction Open Season demonstrates the critical role the Canadian
Mainline plays linking western Canadian gas supply to eastern North
American markets,” said Robinson.
Key highlights of the Canadian Mainline North Bay
Junction Open Season:
Firm transportation service to North Bay Junction:
- Customers have signed long-term binding contracts of between 10
and 21 years to transport natural gas from the Empress receipt
point in Alberta to North Bay Junction (NBJ) in Ontario at a fixed
toll of $0.93/GJ.
- The service to NBJ can be provided with existing facilities
between Empress and NBJ.
Firm transportation service from NBJ to end-use markets:
- In addition to firm transportation service to NBJ, customers
have also signed 10 to 21-year contracts from NBJ to end-use
markets.
- Some contracts for service from North Bay to end-use markets
will require expansion of compression facilities on the Canadian
Mainline system in Eastern Canada at an estimated investment of
$250 million.
- Targeted in-service dates range from November 1, 2019 to
November 1, 2021 depending on expansion facilities required to
provide contracted service.
- The company intends to initiate the regulatory approval process
with the National Energy Board prior to the end of the year.
- TransCanada is also in advanced discussions with customers to
secure long-term contracts to support an expansion of our
interconnected U.S. natural gas pipeline assets.
With more than 65 years' experience, TransCanada is a leader in
the responsible development and reliable operation of
North American energy infrastructure including natural gas and
liquids pipelines, power generation and gas storage facilities.
TransCanada operates one of the largest natural gas transmission
networks that extends more than 91,900 kilometres (57,100 miles),
tapping into virtually all major gas supply basins in North
America. TransCanada is a leading provider of gas storage and
related services with 653 billion cubic feet of storage capacity. A
large independent power producer, TransCanada currently owns or has
interests in approximately 5,700 megawatts of power generation in
Canada and the United States. TransCanada is also the developer and
operator of one of North America’s leading liquids pipeline systems
that extends approximately 4,900 kilometres (3,000 miles),
connecting growing continental oil supplies to key markets and
refineries. TransCanada’s common shares trade on the Toronto and
New York stock exchanges under the symbol TRP. Visit
TransCanada.com to learn more, or connect with us on
social media.
Forward Looking Information This release
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries'
future plans and financial outlook. All forward-looking statements
reflect TransCanada's beliefs and assumptions based on information
available at the time the statements were made and as such are not
guarantees of future performance. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed in this news release, and not
to use future-oriented information or financial outlooks for
anything other than their intended purpose. TransCanada undertakes
no obligation to update or revise any forward-looking information
except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to the
Quarterly Report to Shareholders dated October 31, 2018 and the
2017 Annual Report filed under TransCanada's profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov.
Media Inquiries:Terry Cunha / Jennifer
Link403.920.7859 or 800.608.7859
TransCanada Investor & Analyst
Inquiries:David Moneta / Duane Alexander403.920.7911 or
800.361.6522
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