TransCanada Supplies & Services Yankee Gas
Yankee Gas Services Co. the local distribution arm of Yankee
Energy System Inc., has reached an agreement for TransCanada Gas
Services Inc. (TCGS) to supply gas, pipeline capacity and storage
optimization for three years. Yankee Gas is the largest LDC in
Connecticut, delivering more than 50 Bcf of gas annually to 68
communities and 183,000 customers.
"This type of arrangement represents a sensible alternative to
Yankee Gas operating an in-house trading organization," said Thomas
J. Houde, Yankee vice president of rates and resource planning.
"Both Yankee Gas and its customers will benefit from the increased
operational flexibility and savings that this deal will provide."
Under the agreement, TCGS will use approximately 2.8 Bcf of
storage on the Tennessee and National Fuel pipelines, as well as
55,000 MMBtu/d of Tennessee capacity and associated gas supply.
TCGS will also meet Yankee's full fuel requirements for gas supply
delivered on the Tennessee pipeline from the Gulf Coast region.
"This deal is a logical extension of our development strategy in
the Northeast over the last year, which has seen TCGS double its
business to over one Bcf/d," said Mark Brown, vice president of
marketing/northeast region, for TCGS.
Yankee Gas Services serves about 183,000 customers in 68
Connecticut cities and towns.
TransCanada PipeLines recently signed a three-year agreement
with Semco Energy Gas for gas supply management. Semco also will
buy the majority of its gas supplies from TransCanada for the three
years of the agreement, which is effective April 1, 1999 (See NGI
Oct. 9, 1998). LDC Semco has more than 240,000 customers in the
Upper and Lower Peninsulas of Michigan. The agreement calls for
TransCanada to manage 157.5 MMcf/d of gas transportation on five
U.S. pipelines on behalf of Semco. TransCanada also will manage 16
Bcf of storage for the utility.
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