Innovative solution delivers additional natural gas to eastern markets on Canadian mainline
TransCanada Corporation has secured 675,000 gigajoules (GJ) (630 million cubic feet) per day of new natural gas transportation contracts from the Western Canadian Sedimentary Basin (WCSB) on TransCanada's Canadian Mainline. Its North Bay Junction Open Season resulted in long-term, fixed-priced contracts for service that will reach markets in Ontario, Quebec, the Maritimes and the Northeastern U.S.
"We're pleased to offer an innovative solution on our Canadian Mainline that will benefit customers from Western Canada all the way to the Maritimes," said Tracy Robinson, executive vice-president, Canadian Natural Gas Pipelines. "It helps WCSB producers compete for market, benefits current customers through greater use of existing capacity on the Mainline, and attracts new customers in the Maritimes."
The Canadian Mainline is a critical piece of energy infrastructure that currently transports about 20 per cent of the natural gas produced in the WCSB. "The success of the North Bay Junction Open Season demonstrates the critical role the Canadian Mainline plays linking western Canadian gas supply to eastern North American markets," said Robinson.
Key highlights of the Canadian Mainline North Bay Junction Open Season:
Firm transportation service to North Bay Junction:
- Customers have signed long-term binding contracts of between 10 and 21 years to transport natural gas from the Empress receipt point in Alberta to North Bay Junction (NBJ) in Ontario at a fixed toll of $0.93/GJ.
- The service to NBJ can be provided with existing facilities between Empress and NBJ.
Firm transportation service from NBJ to end-use markets:
- In addition to firm transportation service to NBJ, customers have also signed 10 to 21-year contracts from NBJ to end-use markets.
- Some contracts for service from North Bay to end-use markets will require expansion of compression facilities on the Canadian Mainline system in Eastern Canada at an estimated investment of $250 million.
- Targeted in-service dates range from November 1, 2019 to November 1, 2021 depending on expansion facilities required to provide contracted service.
- The company intends to initiate the regulatory approval process with the National Energy Board prior to the end of the year.
- TransCanada is also in advanced discussions with customers to secure long-term contracts to support an expansion of our interconnected U.S. natural gas pipeline assets.