PIPELINES / TransCanada Pipelines files for Additional Expansion
CALGARY, March 16 /CNW/ - TransCanada PipeLines Limited has filed an
application with the National Energy Board to construct a $14.7 million, 6.5
kilometre pipeline loop in southern Ontario. TransCanada had intended to
include the loop as part of its upcoming 1999 facilities application, but
decided to proceed with it in 1998 in response to customer requests for more
flexibility at the Parkway delivery point.
TransCanada already has approval from the National Energy Board to
construct 417 million cubic feet (MMcf) per day of new capacity in 1998, at a
cost of approximately $825 million.
''This application is part of our continuing effort to provide customers
with timely pipeline capacity and the flexibility they need to meet the
demands of a growing, deregulated market place,'' said Max Feldman,
vice-president, Business Operations and Transportation Marketing.
The proposed loop will result in up to 30 MMcf per day of additional
capacity through Parkway during the summer season by relieving a significant
system bottleneck during a period when an increasing number of shippers
deliver volumes into the Union Gas system for injection into storage. The
project is slated for completion by mid-July 1998.
This is the third consecutive year of significant expansion on
TransCanada's natural gas pipeline system. By November 1998, TransCanada will
have expanded its delivery capability by about 900 MMcf per day since November
1996. These expansions on the Canadian Mainline, combined with the 700 MMcf
per day expansion by Northern Border pipeline into Chicago by November 1998,
will bring pipeline transportation capacity into balance with production
capability from the Western Canadian Sedimentary Basin.
This means the price differentials and perceived capacity shortfalls that
caused producers to consider alternative pipeline proposals will be addressed
by November 1998 as a result of the expansions on TransCanada and Northern
Border, two years in advance of when the proposed Alliance pipeline has stated
it will be in operation.
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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