TransCanada Selected to Develop $6 Billion in Natural Gas

TransCanada Selected to Develop $6 Billion in Natural Gas
Infrastructure to Prince Rupert, British Columbia 
PRINCE GEORGE, BRITISH COLUMBIA -- (Marketwire) -- 01/09/13 --
TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) is pleased
to announce that it has been selected by Progress Energy Canada Ltd.
(Progress) being the successor by amalgamation of PETRONAS Carigali
Canada Ltd. and Progress Energy Resources Corp. to design, build, own
and operate the proposed $5 billion Prince Rupert Gas Transmission
project. This proposed pipeline will transport natural gas primarily
from the North Montney gas-producing region near Fort St. John,
British Columbia (B.C.) to the recently-announced Pacific Northwest
LNG export facility in Port Edward near Prince Rupert, B.C.  
Progress and TransCanada expect to finalize definitive agreements in
early 2013, subject to approvals by their respective Boards.
TransCanada will immediately commence Aboriginal and stakeholder
consultation and preparation of the relevant regulatory filings for
this project under B.C. jurisdiction. 
"The proposed Prince Rupert Gas Transmission project will allow
British Columbians, and all Canadians, to continue to benefit from
the responsible development of the growing supply of valuable natural
gas resou
rces in the WCSB", said Russ Girling, TransCanada's
President and CEO. "TransCanada has an industry leading safety record
that we are extremely proud of, and we look forward to involving the
skilled workforce in B.C. and across Canada to help us develop an
important new component of B.C.'s growing natural gas infrastructure. 
"Together with our previously announced Coastal GasLink Pipeline
project, this is the second major natural gas pipeline proposed to
Canada's West Coast for TransCanada - demonstrating the confidence
that LNG sponsors continue to place in our ability to design, build
and safely operate pipeline systems," added Girling. "Our 60 years of
pipeline experience, including 50 years in B.C., has taught us that
to advance a project of this size, we must engage in open and
meaningful discussions with Aboriginal communities and key
stakeholder groups. We will initiate those conversations very soon."  
In addition, TransCanada proposes to extend its existing NOVA Gas
Transmission Ltd. (NGTL) system in northeast B.C. to connect both to
the Prince Rupert Gas Transmission project and to additional North
Montney gas supply from Progress and other parties. This new
infrastructure will allow the Pacific Northwest LNG export facility
to access both the abundant North Montney supplies as well as other
Western Canada Sedimentary Basin (WCSB) gas supply through the NOVA
Inventory Transfer (NIT) trading hub and the extensive existing NGTL
pipeline network. Initial capital cost estimates associated with
extensions of the NGTL System are approximately $1 to 1.5 billion,
with an in-service date targeted for the end of 2015. 
TransCanada currently owns and operates approximately 24,000
kilometres (15,000 miles) of natural gas pipelines in Western Canada
including the Foothills Pipeline System in southeast B.C. and 360
kilometres (225 miles) in service or pending approvals in northeast
B.C.. If approved, the Prince Rupert Gas Transmission project and
TransCanada's proposed Coastal GasLink Pipeline project to Kitimat
would together add more than 1,400 kilometres (870 miles) to
TransCanada's Western Canadian natural gas transmission systems. 
Information regarding the proposed Prince Rupert Gas Transmission
project is as follows: 


 
--  Receipt point: near Fort St. John, B.C. 
--  Delivery point: Pacific Northwest LNG facility in Port Edward near
    Prince Rupert, B.C. 
--  Product: natural gas from B.C.'s abundant North Montney supply and
    elsewhere from the WCSB 
--  Length of route: approximately 750 kilometres (470 miles) of large
    diameter pipe 
--  Initial pipeline capacity: 2.0 billion cubic feet of gas per day with
    the ability to expand to 3.6 billion cubic feet of gas per day 
--  Anticipated jobs during construction: estimated 2,500 direct
    construction jobs over a three year construction period 
--  Estimated cost: detailed cost information will be developed following
    completion of project scoping and planning. The current estimate for the
    Prince Rupert Gas Transmission project is approximately $5 billion (2012
    dollars) 
--  Regulatory process: applications for required regulatory approvals are
    expected to be made through applicable B.C. provincial and Canadian
    federal processes 
--  Estimated in-service date: end 2018 subject to regulatory and corporate
    approvals 

 
In determining the final pipeline route, TransCanada will take into
consideration many factors, including Aboriginal, stakeholder and
government input, environmental influences, archaeological and
cultural values, land use compatibility, safety, constructability and
economics. As a member of the world Dow Jones Sustainability Index,
TransCanada is an industry leader that is committed to minimizing the
impact of its operations.  
With more than 60 years' experience, Tran
sCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent'
s largest
providers of gas storage and related services with approximately 380
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 11,800 megawatts
of power generation in Canada and the United States. TransCanada's
common shares trade on the Toronto and New York stock exchanges under
the symbol TRP. For more information visit:
http://www.transcanada.com or check us out on Twitter @TransCanada or
http://blog.transcanada.com/.  
FORWARD LOOKING INFORMATION  
This publication contains certain information that is forward-looking
and is subject to important risks and uncertainties (such statements
are usually accompanied by words such as "anticipate", "expect",
"would" or other similar words). Forward-looking statements in this
document are intended to provide TransCanada security holders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and
its subsidiaries' future financial and operation plans and outlook.
All forward-looking statements reflect TransCanada's beliefs and
assumptions based on information available at the time the statements
were made. Readers are cautioned not to place undue reliance on this
forward-looking information. TransCanada undertakes no obligation to
update or revise any forward-looking information except as required
by law. For additional information on the assumptions made, and the
risks and uncertainties which could cause actual results to differ
from the anticipated results, refer to TransCanada's Management's
Discussion and Analysis filed February 15, 2012 under TransCanada's
profile on SEDAR at http://www.sedar.com/ and other reports filed by
TransCanada with Canadian securities regulators and with the U.S.
Securities and Exchange Commission. 
For more information regarding Prince Rupert Gas Transmission
project: 1-855-633-2011 or
www.transcanada.com/prince-rupert-gas.html.  
For more information regarding Pacific Northwest LNG: 1-866-931-2201
or www.pacificnorthwestlng.com.  
For more information regarding Coastal GasLink: 1-855-633-2011 or
www.transcanada.com/coastalgaslink.
Contacts:
TransCanada
Media Enquiries:
Shawn Howard/Grady Semmens
403.920.7859 or 800.608.7859 
TransCanada
Investor & Analyst Enquiries:
David Moneta/Lee Evans
403.920.7911 or 800.361.6522
www.transcanada.com
 
 
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