PIPELINES / TransCanada Pipelines proposes Expansion
CALGARY, Jan. 8 /CNW/ - TransCanada PipeLines Limited today announced it
intends to file a 1999 facilities application this winter with the National
Energy Board that will include a proposed 1.4 billion cubic foot (Bcf) per day
expansion to serve the proposed Viking Voyageur pipeline.
The expansion is expected to require construction of pipeline facilities
in Saskatchewan and Manitoba by November 1999 to meet downstream market
requirements in the U.S. midwest.
Wayne Lunt, president of TransCanada' North American Pipeline
Investments, said the TransCanada expansion, combined with Viking Voyageur,
will provide a competitive toll into the premium markets in the U.S. upper
midwest. ''Voyageur offers natural gas producers the opportunity to directly
serve the immense Chicago market as well as growing upstream markets in
Minnesota and Wisconsin,'' said Mr. Lunt. ''Equally, the project offers
energy consumers in the U.S. midwest a direct connection to western Canadian
natural gas which will improve upon the region's natural gas prices and supply
reliability. Add to that transportation agreements with competitive rates and
flexible terms, and you see a project with tremendous benefits for both the
market and producers.''
Bob Reid, president of TransCanada's Canadian Mainline, said the 1999
facilities expansion to Viking Voyageur replaces TransCanada's proposed
TransVoyageur project. ''TransVoyageur was created to offer Canadian
producers an opportunity for pipeline ownership,'' said Mr. Reid. ''It became
evident the producers are less interested in ownership and more interested in
low transportation costs. The most cost effective way to connect to Viking
Voyageur is through an expansion of our Canadian Mainline. The result is a
better project for the U.S. upper midwest than other announced alternatives.''
The proposed 773-mile, 42-inch diameter Viking Voyageur pipeline is owned
by subsidiaries of TransCanada, Northern States Power and Nicor. It has
received strong U.S. market and political support. Viking Voyageur filed an
extensive application with the Federal Energy Regulatory Commission in October
1997.
TransCanada PipeLines Limited is one of North America's leading
transporters of natural gas through its energy transmission businesses.
TransCanada also operates significant complementary businesses in energy
marketing and energy processing in North America, and is extending its
operations internationally.
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