Canadian Manufacturing

TransCanada reaches agreement with LDCs on Energy East and Eastern Mainline Project

Company jumps LDC hurdle as it moves forward with 4,600 kilometre project



CALGARY—TransCanada Corp. has reached an agreement with Gaz Metro, Enbridge Gas Distribution Inc. and Union Gas Ltd. that has resolved the local distribution companies’ issues with Energy East and the Eastern Mainline Project.

The company said the agreement ensures Energy East and the Eastern Mainline Project will provide gas consumers in Eastern Canada with sufficient natural gas transmission capacity and reduced natural gas transmission costs.

“We have heard the LDCs’ concerns and worked with them to address issues in a way that best met our collective objectives,” Russ Girling, TransCanada’s president and CEO, said. “Most importantly, this agreement will benefit consumers with the safe, efficient and more affordable delivery of North American produced oil and natural gas to fuel their everyday lives.”

Girling added that is had always been TransCanada’s intention that its customers in Quebec and Ontario would receive the necessary gas through the agreement.

“We have also maintained that re-purposing a portion of the Canadian Mainline for Energy East would make the system more efficient and reduce transportation costs to our customers. We are pleased to honour our commitments,” he said.

In addressing the LDCs’ concerns, TransCanada said it will size the Eastern Mainline Project to meet all firm requirements including gas transmission contracts resulting from both 2016 and 2017 new capacity open seasons plus approximately 50 million cubic feet per day of additional capacity. The Calgary-based company said it will also ensure a long-term benefit to gas consumers in eastern Ontario and Québec of at least $100 million through to 2050.

The Energy East project is expected to enter the National Energy Board hearing stage to determine whether or not the regulator will allow TransCanada to move forward.

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