Alberta Index - ENERGY: TransCanada applies to build 330-km Alberta pipeline

ENERGY: TransCanada applies to build 330-km Alberta pipeline

(AlbertaIndex, November 22, Thursday) --- Calgary-based TransCanada Corp said its wholly owned subsidiary, NOVA Gas Transmission Ltd (NGTL), has applied to the Alberta Energy and Utilities Board for a permit to construct a 300-kilometre, 42-inch natural gas pipeline and install 26 megawatts of additional compression and associated facilities on the northern section of the Alberta system.

Construction of the $983 million North Central Corridor pipeline project could begin as early as late 2008, subject to regulatory approvals.

The project will add new capacity to meet rising gas supply in the province’s northwest, declining gas supply in the northeast, growing intra-provincial markets resulting largely from increased oil sands development and reduced delivery capability to interconnecting pipelines at the Alberta-Saskatchewan border.

TransCanada said the expansion will allow NGTL to meet increased customer requirements beyond 2010.

“The North Central Corridor is the most cost-effective facility to accommodate evolving gas supply and market dynamics both within and outside Alberta,” says Hal Kvisle, TransCanada president and CEO.

“We continue to work with our customers to find innovative solutions to meet their changing market needs.”

The pipeline will connect the northwest portion of the Alberta System at the existing Meikle River compressor station to the northeast portion of the system at the existing Woodenhouse compressor station.

In addition, 26 MW of compression will be added at the existing Meikle River compressor station. The first segment of the pipeline is expected to be completed in April 2009. The second segment could start up in April 2010.

TransCanada said the pipeline will be constructed along existing infrastructure corridors to minimize environmental impacts.

The company said it consulted extensively with landowners, First Nations communities and other interested stakeholders located in the area regarding the pipeline route and has received no objections from these groups. It also consulted customers.

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