Joint Open Season Offers New England and Atlantic Canada New Natural Gas Supplies
January 12, 2015
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.
About PNGTS
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.
About TCPL
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 (TSX: TRP) and New York (NYSE: TRP) stock exchanges under the symbol TRP.
About IGTS
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.
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.
About PNGTS
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.
About TCPL
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 (TSX: TRP) and New York (NYSE: TRP) stock exchanges under the symbol TRP.
About IGTS
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.
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