TransCanada Begins Open Season for Natural Gas Pipeline From U.S. Rockies to U.S. Midwest
CALGARY, ALBERTA--(Marketwire - April 7, 2008) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced the start of a binding open season process for a proposed natural gas transmission pipeline that would move natural gas supply from the U.S. Rockies basins to markets in the U.S. Midwest.
The proposed Pathfinder Pipeline project is an approximate 500-mile (800-kilometre), 42-inch diameter interstate pipeline to transport natural gas northeastward from Wamsutter, Wyoming through Montana and North Dakota to the Northern Border Pipeline Company system at a location commercially attractive for delivery into the Ventura and Chicago area markets. The initial capacity is 1.2 billion cubic feet per day, with an ultimate capacity of 2.0 billion cubic feet per day. The project includes an option to build an approximate 140-mile (225-kilometre) supply zone pipeline connecting Meeker, Colorado to Wamsutter. The anticipated project in-service date is late 2010.
To meet further growth in Rockies gas supply, a future phase is proposed to extend the Pathfinder Pipeline project approximately 275 miles (440 kilometres) from the Northern Border Pipeline to Noyes, Minnesota and Emerson, Manitoba, where gas can be shipped to Eastern markets or storage facilities using the Great Lakes Gas Transmission system and TransCanada's Canadian Mainline system.
"TransCanada is evaluating different options to move an increasing supply of natural gas from the Rocky Mountains," says Hal Kvisle, president and chief executive officer of TransCanada. "The proposed Pathfinder Pipeline would provide customers with access to the growing U.S. Midwest market and potentially to Eastern markets and gas storage facilities using existing assets."
During the binding open season period, which begins April 7 and runs through May 22, 2008, TransCanada will accept binding bids from parties for firm natural gas transportation capacity from Meeker and from Wamsutter to Northern Border Pipeline Company. TransCanada also is seeking non-binding expressions of interests for the future 275-mile (440-kilometre) extension of the proposed Pathfinder Pipeline project to connect from the Northern Border Pipeline Company to Noyes, Minnesota and Emerson, Manitoba. Interested parties are invited to contact Todd Johnson at 403.920.2070 or Eric Kaul at 403.920.2248 for more information. The proposed Pathfinder Pipeline project web page (www.transcanada.com/pathfinder) provides additional information about the project, including open season guidelines and a map of the proposed pipeline corridor.
A segment of the proposed Pathfinder Pipeline project follows the same route as the proposed Bison Pipeline project. TransCanada is a partial owner in the proposed Bison Pipeline project through its interest in TC PipeLines, LP. The two projects are coordinating preliminary field activities as they develop commercial support for their respective projects. The final design and location of the proposed Pathfinder Pipeline project will reflect the commercial support obtained, input of stakeholders and the federal regulatory process.
If sufficient support for the initial phases of the proposed Pathfinder Pipeline project is obtained through the binding open season process, TransCanada will proceed with the necessary regulatory applications. Input from stakeholders will be sought through the regulatory process, as well as an extensive engagement process.
With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 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 approximately 355 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada's beliefs and assumptions based on information available at the time such statements were made. 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, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward-looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. 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 or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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