Maritimes & Northeast Pipeline Signs Two Major Precedent Transportation Agreements Supporting System Expansion
HALIFAX, Nova Scotia and WALTHAM, Mass., July 15 -- Maritimes
& Northeast Pipeline (Maritimes) today announced it has executed precedent
transportation agreements (agreements) with two major international energy
companies proposing to construct liquefied natural gas (LNG) import terminals
in Atlantic Canada. Maritimes has signed agreements with Anadarko Petroleum
Corporation to transport 813,000 MMBtu/day of natural gas from the proposed
Bear Head LNG terminal near Point Tupper, Nova Scotia; and with Repsol YPF to
transport 750,000 MMBtu/day of natural gas from the proposed Canaport LNG
terminal near Saint John, New Brunswick.
The agreements are for transportation service to markets in Atlantic
Canada and the northeastern United States. Pipeline transportation service
from both the Bear Head site and the Canaport site is planned to commence in
2008.
"LNG development is a major step forward for the energy sector in Atlantic
Canada and the northeastern United States," said Doug Bloom, president of
Maritimes.
"Adding another source of natural gas supply will provide increased energy
reliability, security and choice to consumers in both regions."
Maritimes held an open season earlier this year to gauge market interest
in transportation capacity for natural gas from LNG and other supply projects
in the region. The open season responses by Anadarko and Repsol have led to
transportation commitments supporting a Maritimes system expansion.
"Maritimes is very pleased to welcome Anadarko and Repsol as new
customers," said Bloom. "LNG in Atlantic Canada makes sense for several
reasons. It capitalizes on the availability of an established and expandable
pipeline system, provides direct access to premium and growing markets, and
locates new energy infrastructure in a developing supply region."
Maritimes would increase its capacity in both Canada and the United States
to transport natural gas from the Bear Head terminal and the Canaport
terminal. Maritimes will now commence work on detailed engineering design and
stakeholder consultation for a system expansion, leading to regulatory
applications in late 2005 or early 2006 to the National Energy Board and the
Federal Energy Regulatory Commission. |
