Canadian Manufacturing

TransCanada may expand natural gas capacity in Ontario, Quebec

Looking for "commitments from interested parties for firm capacity" on Canadian Mainline in region



TORONTO—TransCanada Corp. is gauging interest in a possible natural gas transmission line expansion in Ontario and Quebec that coincides with its proposed Energy East pipeline project.

According to TransCanada, it has launched an “open season to obtain commitments from interested parties for firm capacity” on its Canadian Mainline system in the so-called “Eastern Triangle” region—connecting North Bay, Ont., Toronto and Montreal.

“The Canadian Mainline continues to be a critical piece of Canada’s natural gas infrastructure, and TransCanada will ensure that our customers continue to receive reliable and fairly priced transportation services,” TransCanada’s president of natural gas pipelines Karl Johannson said in a statement.

The firm anticipates that additional pipeline capacity and compression facilities may be required to accommodate customers looking to access natural gas supplies in eastern Canada.

The open season comes as TransCanada pushes for its Energy East project, a proposal to convert a portion of natural gas pipeline on the Canadian Mainline to carry crude oil.

“Energy East will go a long way towards improving the utilization of our existing Mainline system for the benefit of our customers,” Johannson said.

“This open season is an important step in identifying the scope and cost of any new capacity that may be needed. It will also allow TransCanada to ensure that the cost of serving our natural gas customers does not increase as a result of the Energy East conversion.”

TransCanada said it will only proceed with the necessary regulatory applications should the open season result in enough commitments to the idea.

The open season launched Nov. 29, and will close Jan. 15, 2014.

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