TransCanada Evaluating Maine Site for LNG Facility

TransCanada Corp and ConocoPhillips have presented plans to evaluate a site in Harpswell, Maine, for the development of a liquefied natural gas (LNG) regasification facility. The companies have formed a partnership called "Fairwinds" and have asked the Town of Harpswell, located approximately 15 miles northeast of Portland, to vote on leasing a site owned by the Town for an LNG facility.

If leasing of the site is approved by the residents of Harpswell and the necessary regulatory approvals are subsequently received, construction of the LNG facility could begin in 2006 with the facility becoming operational in 2009. Natural gas from the LNG facility would be delivered through a new pipeline that would connect with an existing pipeline in Maine.

TransCanada estimates gas demand in North America will exceed traditional supply by the end of the decade. "Alternative supplies including Northern gas and LNG imports are going to be needed by the market and we expect to play a role in fulfilling that need," says Hal Kvisle, TransCanada's chief executive officer.

"TransCanada is in the business of connecting gas supply to markets, whether that supply comes from traditional basins, the North or in the form of imported LNG."

Mr. Kvisle said TransCanada is in an excellent position to participate in LNG. "We know the North American market and we have the pipeline assets, experience and ability necessary to transport that LNG, once regasified, to market."