PIPELINES / BC Gas files new application to build Southern Crossing Pipeline,
announces additional third party participation
VANCOUVER, Dec. 11 /CNW/ - BC Gas Utility Ltd. (BC Gas) announces that it
is filing today an application to the British Columbia Utilities Commission
(BCUC) for a Certificate of Public Convenience and Necessity to construct and
operate the Southern Crossing Pipeline (SCP) project.
In April, 1998 the BCUC denied an earlier application but noted that BC
Hydro would have requirements for natural gas to fuel thermal generation
projects and directed BC Gas to examine the feasibility of obtaining peak
shaving from BC Hydro and its natural gas-fired electricity suppliers.
The BCUC further noted ''if there is a requirement for new pipeline
infrastructure upstream of Huntingdon to serve these loads, BC Gas may wish to
re-examine the SCP and attempt to obtain commitments from BC Hydro for
capacity on the SCP which would make it a viable alternative.''
BC Gas has now entered into peak service agreements and transportation
agreements with BC Hydro and has also concluded transportation and peak
shaving agreements with PG&E Energy Trading, Canada Corporation (PG&E Energy
Trading Canada). With offices in Calgary and Saskatoon, PG&E Trading Canada is
one of the largest traders of natural gas in Canada. It is a subsidiary of
PG&E Corporation, a major player in the North American energy business.
Combined, these agreements provide BC Gas with 105 million cubic feet of
firm shipping commitments and peak day gas supply delivered at Huntingdon in
the Fraser Valley for up to 15 days a year for a 10 year period.
Commenting on today's filing, BC Gas President and CEO, John Reid said,
''This is a good day for British Columbia and a great day for gas customers. I
am delighted we have been able to work with BC Hydro in the best interests of
gas and electricity customers. And I am very pleased that such a significant
organization as PG&E Energy Trading Canada sees the strategic value of the
Southern Crossing Pipeline project.
''British Columbia will benefit in the North from the construction of
the Alliance Pipeline to Chicago and the Southern Crossing Pipeline will
provide economic stimulus across Southern B.C. as well as provide energy
customers with security of supply and competitive prices.''
The project represents an investment of approximately $350 million which
is expected to create in excess of 3,300 person-years of direct and induced
employment in British Columbia.
Senior Vice President, Randy Jespersen, the executive responsible for the
SCP project, stated, ''Having satisfied the directives of the April 3 BCUC
order, we look forward to a speedy examination and approval of our
application.
''To date we have enjoyed a high level of co-operation from key
stakeholders and incredible support from the communities along the route.
Virtually every municipal and regional district council from Cranbrook to
Hedley have passed motions and sent in letters of support for this project. So
too have the Osoyoos Indian Band. We look forward to delivering it for them -
in operation on time in November, 2000.'' |
