Joint Open Season Offers New England and Atlantic Canada New Natural Gas Supplies
PORTLAND, ME--(Marketwired - January 12, 2015) - In response to ongoing efforts to address the urgent energy needs of the New England and Atlantic Canada region, Portland Natural Gas Transmission System (PNGTS), TransCanada PipeLines Limited (TCPL) and Iroquois Gas Transmission System, L.P. (IGTS) (the "Partners") announced simultaneous joint open seasons that will be conducted to allow for up to 300,000 dekatherms (Dth) per day of natural gas supply to be transported from the Wright Hub in Wright, NY to premium markets in New England, New Brunswick, and Nova Scotia, at a combined, fixed transportation rate of $1.37/Dth, as early as November 1, 2017.
The joint collaboration leverages existing pipeline assets to bring much-needed incremental natural gas supplies to constrained Northeast US and Eastern Canadian markets, thereby dramatically reducing the amount of new infrastructure that needs to be constructed. By utilizing readily expandable, in-the-ground pipeline assets, the Partners are able to minimize impacts to the environment that would otherwise be associated with new expansions, while at the same time providing cost savings to the final consumer. With a fixed price offering, the project provides price certainty, while negating the risk of construction overrun costs for shippers.
Over the past 18 months, numerous government agencies and industry associations have launched a variety of initiatives which have concluded that additional firm natural gas supplies are urgently needed in New England. These same conclusions hold true for markets located in Atlantic Canada. By participating in the three open seasons being announced today by PNGTS, TCPL, and IGTS, local distribution companies, electric generators, marketers, producers and industrial end users will be able to secure a firm transportation capacity path for additional supplies to their markets that offers price certainty and timing certainty only available from modification of existing facilities.
Portland Natural Gas Transmission System is a high-capacity, high-pressure interstate natural gas pipeline which began serving New England's growing energy needs on March 10, 1999. Connecting the TransQuebec and Maritimes Pipeline (owned by TransCanada Pipelines and Gaz Metro) at the Canadian border and the Maritimes and Northeast Pipeline at Westbrook, ME (owned by Duke Energy, Exxon Mobil and NS Power Holdings) with the Tennessee Gas Pipeline System (owned by El Paso Energy Corporation) near Boston, MA, PNGTS is strategically situated between three major pipeline networks. For more information visit: www.pngts.com.
With more than 60 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 a network of natural gas pipelines that extends more than 68,500 kilometres (42,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with more than 400 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,900 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest liquids delivery systems. TransCanada's common shares trade on the Toronto (
Iroquois Gas Transmission System, L.P. is the owner of an interstate natural gas pipeline extending 416 miles from the US-Canadian border at Waddington, New York, through New York and western Connecticut to its terminus in South Commack, Long Island, NY and Hunts Point, Bronx, NY. The company is regulated by the Federal Energy Regulatory Commission ("FERC"). Since commencing operations in December 1991, Iroquois has more than doubled its design day capacity. The pipeline is operated by the Iroquois Pipeline Operating Company, a wholly-owned subsidiary of Iroquois. Iroquois is a Limited Partnership owned by affiliates of TransCanada PipeLines Limited, Dominion Resources, Inc., National Grid, New Jersey Resources and Iberdrola USA. For more information visit: www.iroquois.com.
FORWARD LOOKING INFORMATION
This publication 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 November 3, 2014 and 2013 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.