TransCanada, LDCs reach deal on Energy East, Eastern Mainline projects

TransCanada Corp. has reached an agreement with local distribution companies Gaz Metro Ltd. Partnership, Enbridge Gas Distribution Inc., and Union Gas Ltd. ensuring that the Energy East and the Eastern Mainline projects will provide Eastern Canada with sufficient gas transmission capacity and reduced transmission costs.

As part of the deal, TransCanada 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 50 MMcfd of additional gas capacity.

The Eastern Mainline project will add 250-300 km of gas pipeline in the Toronto-Montreal corridor. Energy East is a proposed 4,600-km oil pipeline that will have capacity to transport 1.1-million bo/d from Alberta and Saskatchewan directly to refineries and port terminals in Eastern Canada (OGJ Online, Apr. 2, 2015).

TransCanada proposes to convert 3,000 km of one of its Canadian Mainline pipelines from natural gas to oil service for Energy East.