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TransCanada Supplies & Services Yankee Gas

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.

Joe Fisher

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