EGNB Awards WPS Transportation Contract
Enbridge Gas New Brunswick (EGNB) has entered into a three year
deal whereby Green Bay, WI,-based WPS Energy Services will assume
control of EGNB's approximate 11 MMcf/d transportation capacity on
Maritimes & Northeast Pipeline. EGNB had to unload the capacity
because as the distributor it could not also sell gas.
Currently, a new greenfield distribution system is being built
in New Brunswick, which will expose residents to natural gas for
the first time. EGNB won the rights for distribution in the
Province in fall of 1999, right after the government set up the gas
"When the government set up the industry here, it was set up as
a totally unbundled industry so that us as the gas distributor
could not sell natural gas," said EGNB spokesman Mark Butler. "In
order to have Maritimes & Northeast pipeline build the
facilities to connect into our distribution system, they needed a
firm transportation agreement signed to ensure they received their
tolls. We were the only ones in a position to make that commitment,
so we had to sign the firm service agreement for transportation
even though we knew we were not actually going to be able to use
EGNB awarded WPS the contract over other industry participants
due to its "superior proposal" as well as its interest in the New
Brunswick marketplace, EGNB said. WPS has already filed its
application with the New Brunswick Board of Commissioners of Public
Utilities for gas marketer certification and expects to be ready to
deliver gas by November.
Butler said he believed Irving Oil and Engage Canada had both
expressed interest in applying to become certified marketers as
"With the transportation capacity, WPS Energy Services will
provide competitive physical gas supply commodity and other
services to end-use customers and natural gas marketers in New
Brunswick," EGNB stated.
EGNB is a partnership between Enbridge Inc., and a group of
local New Brunswick investors.
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