TransCanada Files Application to Expand Alberta System Facilities

TransCanada filed an application with the Alberta Energy and Utilities Board for a permit to construct a 300-kilometer, 42-inch natural gas pipeline and install 26 megawatts of additional compression and associated facilities on the northern section of the Alberta System. The estimated capital cost of this expansion is $983 million.

The North Central Corridor pipeline project is an expansion of the integrated Alberta System. It will provide capacity needed to address increasing gas supply in northwest Alberta, declining gas supply in northeast Alberta, growing intra-Alberta markets resulting largely from increased oil sands development and reduced delivery capability to interconnecting pipelines at the Alberta-Saskatchewan border. This expansion will allow NGTL to meet increased customer requirements for the 2009/2010 Gas Year and beyond.

"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 chief executive officer. "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. Subject to regulatory approval, construction is anticipated to begin in late 2008. The first segment of the pipeline is expected to be completed in April 2009. The second segment is anticipated to be completed and in service in April 2010.

To the extent possible, the pipeline will be constructed along existing infrastructure corridors to minimize environmental impacts. TransCanada 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. TransCanada also conducted extensive consultation with customers. We are committed to continuing to build and maintain strong relationships with all stakeholders who have interests in the project.


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