TransCanada and Shell to jointly pursue offshore LNG terminal in Long Island Sound
CALGARY, Alberta - November 9, 2004 – (TSX: TRP) (NYSE: TRP) – TransCanada Corporation and Shell US Gas & Power LLC (Shell) today announced plans to develop an offshore liquefied natural gas (LNG) regasification terminal, named Broadwater Energy, in the New York State waters of Long Island Sound. The proposed terminal would be capable of receiving, storing, and regasifying imported LNG with an average send-out capacity of approximately one billion cubic feet a day of natural gas.
Industry analysts agree that gas demand in North America will exceed traditional supply by the end of the decade. “New York and Connecticut are regions specifically identified as needing additional energy supplies,” says Hal Kvisle, TransCanada's chief executive officer. “TransCanada is in the business of connecting gas supply to markets and the Broadwater Energy proposal is a demonstration of this commitment to delivering this safe, clean, reliable energy source for the future.”
“The Broadwater project is a positive opportunity for the New York and Connecticut markets. Energy demand in North America is expected to increase substantially and Shell believes LNG is an efficient, reliable and clean way to meet this demand. Shell is a global leader in LNG supply projects and regasification terminals and we look forward to bringing our expertise to this project,” says Catherine Tanna, Shell Gas & Power’s Director for the Americas and Africa.
Shell’s LNG expertise as an operator and supplier combined with TransCanada’s natural gas transportation expertise and 10 year history in this market enable Broadwater to deliver this much needed energy supply safely and reliably.
In the proposed project, TransCanada and Shell will build and install a floating storage and regasification unit (FSRU) that will receive, store and re-gasify LNG in Long Island Sound at a proposed location about nine miles (15 kilometres) off the Long Island coast and 11 miles (18 kilometres) off the Connecticut coast. Broadwater Energy LLC will operate the facility, while Shell will own the capacity and supply the LNG. The estimated cost of construction is approximately US$700 million.
Before construction of the facility can commence, the proposed Broadwater Energy LNG facility must receive regulatory approval to proceed from Federal and State governments. The regulatory approval process is expected to take approximately two to three years and will provide a number of opportunities for the public and other stakeholders to participate.
TransCanada and Shell have filed a request with the Federal Energy Regulatory Commission (FERC) to initiate a six-to-nine month public review of the Broadwater proposal. Provided the necessary approvals are received, it is expected the facility will be in service in late 2010.
For more information about Broadwater Energy, go to http://www.broadwaterenergy.com.
TransCanada is a leading North American energy company. TransCanada is focused on natural gas transmission and power services with employees who are expert in these businesses. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing more than 4,700 megawatts of power generation – an amount of power that can meet the needs of about 4.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.
Shell is an experienced operator and the largest independent equity supplier of LNG globally. Shell currently has interests in six projects globally including Nigeria LNG, Oman LNG, North West Shelf (Australia), Malaysia LNG, Brunei LNG and Sakhalin II in Russia.
Note: All financial figures are in U.S. dollars unless noted otherwise.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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