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TransCanada Expands Gas Storage Capacity
These developments position TransCanada to become one of the largest natural gas storage providers in Western Canada. Upon completion of the Edson facility, TransCanada will own or control more than 110 Bcf, or approximately one third, of the storage capacity in Alberta. TransCanada intends to be in a position to provide fee-based gas storage services directly to customers by April 2005, with additional capacity available from the Edson facility commencing early in the second quarter of 2006, on a phased-in basis. The company currently owns 60 per cent of CrossAlta Gas Storage & Services Ltd., which operates a 40-Bcf storage facility near Crossfield, Alberta. TransCanada's gas storage business will continue to be operated independently from its regulated natural gas transmission business. "The Edson facility strengthens our position in the natural gas storage business and will enhance Alberta's position as a major natural gas hub in North America," said Hal Kvisle, TransCanada's chief executive officer. "We have operated in the Western Canada Sedimentary Basin for more than 40 years, we know the gas storage business through our 10-year involvement in CrossAlta, and we see our growth in gas storage as a natural extension of our natural gas transmission business." Currently, market fundamentals for natural gas storage are strong. The imbalance in North American natural gas supply and demand has created natural gas price volatility, resulting in demand for storage service. TransCanada believes Alberta-based storage will continue to serve market needs and could play an important role should Northern gas be connected to North American markets. Find out more about TransCanada Search for more TransCanada News Posted: 20/01/05 |
TransCanada is developing a $200 million natural gas storage facility near Edson, Alberta. The Edson facility will have a capacity of approximately 50 billion cubic feet (Bcf) and will connect to TransCanada's Alberta System. In addition, TransCanada has recently secured a long-term contract with a third party for up to 40 Bcf of existing, Alberta-based storage capacity.