TransCanada Secures Shipper Commitments for Horn River Pipeline Project
CALGARY, ALBERTA--(Marketwire - Feb. 26, 2009) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced the successful completion of a binding open season, securing support for firm transportation contracts of 378 million cubic feet per day to connect new shale gas supply in the Horn River basin north of Fort Nelson B.C. to the Alberta System.
"The positive commercial response is a result of the tremendous, largely untapped source for unconventional natural gas in the northeastern B.C. shale basins, combined with TransCanada's ability to meet this demand economically and efficiently," said Hal Kvisle, TransCanada president and chief executive officer. "Looking forward, we expect to add future capacity to the line as the right opportunities present themselves."
The Horn River pipeline project is approximately 155 kilometres (km) and is expected to use new pipelines up to 36-inch diameter and an existing pipeline in the area to transport sweet natural gas from the Horn River area to a tie in point on TransCanada's existing Alberta System. The pipeline is expected to be operational early in the second quarter of 2011, subject to regulatory approvals. The proposed project is expected to cost approximately $340 million.
TransCanada is also encouraged by strong commercial support it has received for the developing shale gas reserves in the Montney formation of northeast B.C. as it has recently concluded a successful binding open season for gas transmission service from the Groundbirch area located west of Dawson Creek. Shippers have committed to firm gas transportation contracts that will reach 1.1 billion cubic feet per day by 2014. The proposed Groundbirch pipeline will be approximately 78 km in length and is expected to commence service in fourth quarter 2010, subject to regulatory approvals. The project is expected to cost approximately $250 million.
TransCanada expects to seek regulatory approval to build both the Horn River and Groundbirch projects as integrated extensions of the Alberta System. The company's proposal is subject to the outcome of its existing application to the National Energy Board (NEB) to have the Alberta System federally regulated. The NEB recently announced it will issue its decision on that application on February 26, 2009.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 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 approximately 370 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
Note: All financial figures are in Canadian dollars unless noted otherwise.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this document are intended to provide TransCanada shareholders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operations plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for growth and expansion. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Company's pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned to not place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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