TransCanada Pleased With NEB Decision to Federally Regulate Alberta System
CALGARY, ALBERTA--(Marketwire - Feb. 26, 2009) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced the National Energy Board (NEB) has approved TransCanada's application for federal regulation of its Alberta System. The decision will provide TransCanada greater flexibility to transport natural gas to North American markets and attract new gas supplies to the Alberta System.
"The decision is good news for our customers, Alberta System stakeholders and our company," said Hal Kvisle, TransCanada president and chief executive officer. "Having the Alberta System federally regulated means TransCanada can extend the pipeline across provincial borders, allowing us to provide potential customers a direct connection to the pipeline network, and provide attractive service options and rates to producers in British Columbia (B.C.) and the Northwest Territories."
The change in regulatory oversight of the Alberta System increases the probability that B.C. and Northern gas would integrate directly with the Alberta hub - North America's largest natural gas trading point. Attraction of additional gas supplies to the Alberta System will increase the utilization of existing infrastructure within and downstream of Alberta, which is expected to result in reduced tolls, improved netbacks, higher royalties and better access to new and existing markets.
Kvisle says TransCanada expects to file applications with the NEB in the next few months for approval to extend the Alberta System into northeastern B.C. to provide integrated service to Horn River and Montney shale gas shippers. This follows recent successful binding open seasons for services to the Horn River and Montney areas.
TransCanada has secured commercial commitments starting in the fourth quarter of 2010, increasing to approximately 1.5 billion cubic feet per day by 2014. These volumes are expected to rise in the future. The 77 kilometre (km) long Groundbirch pipeline proposed for the Montney area is expected to be operational in the fourth quarter of 2010. At a total length of 155 km, the Horn River line should begin transporting gas in the first half of 2011.
TransCanada had contacted affected landowners about the applied-for jurisdictional change, and now, following the NEB's decision, will implement a broad-based public consultation and communications program, including Aboriginal communities, landowners, shippers and interested stakeholders. This process will ensure parties are aware of and understand the NEB decision, and have the opportunity to discuss with TransCanada potential implications of this jurisdictional change. For more information, please visit http:www.transcanada.com/social/landowner.html
The Alberta System or NOVA Gas Transmission Limited (NGTL) is a 23,500 km pipeline that gathers natural gas for use both in Alberta and to deliver it to provincial border points for export to North American markets. It is one of the largest systems in North America and gathers 66 per cent of the natural gas produced in Western Canada.
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 operational 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 others, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of TransCanada'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 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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