Canadian Manufacturing

TransCanada reaches revised deal with Enbridge, Gaz Metro and Union Gas

by The Canadian Press   

Canadian Manufacturing
Manufacturing Enbridge Energy East pipeline Gaz Metro Keystone Kings North Ontario Superior Court pipelines union gas

The agreement includes a revised framework for tolls on TransCanada's mainline and the proposed Kings North project

TORONTO—Several Canadian pipeline companies have struck a deal to resolve a dispute over how key infrastructure is shared in the Greater Toronto Area.

A joint announcement says that TransCanada has reached a revised agreement with Enbridge, Gaz Metro and Union Gas, which operate major gas distribution systems in Ontario and Quebec.

The agreement includes a revised framework for tolls on TransCanada’s mainline and the proposed Kings North project in the Toronto area.

TransCanada said it is committed to providing natural gas pipeline capacity to meet all current and future needs of Eastern gas consumers.


“On behalf of the three local distribution companies, we are pleased to have reached an agreement in principle with TransCanada that will give consumers access to affordable and diverse gas supplies and long-term certainty on transportation tolls,” said Sophie Brochu, Gax Metro’s president and CEO.

“Access to affordable energy helps businesses be competitive, supports local economic growth and keeps costs low for families and businesses in Ontario and Quebec.”

Enbridge and TransCanada—two Calgary-based companies with extensive pipeline networks throughout Canada and the U.S.—have been at odds.

TransCanada went to the Ontario Superior Court of Justice in August to force Enbridge to abide by the terms of a memorandum of understanding.

Enbridge had terminated the MOU in July, alleging TransCanada was doling out space of the pipeline that violated Ontario law. TransCanada countered that Enbridge had broken off the agreement “for its own convenience.”


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