Yankee Gas Services Co. the local distribution arm of YankeeEnergy System Inc., has reached an agreement for TransCanada GasServices Inc. (TCGS) to supply gas, pipeline capacity and storageoptimization for three years. Yankee Gas is the largest LDC inConnecticut, delivering more than 50 Bcf of gas annually to 68communities and 183,000 customers.

“This type of arrangement represents a sensible alternative toYankee Gas operating an in-house trading organization,” said ThomasJ. Houde, Yankee vice president of rates and resource planning. “Both Yankee Gas and its customers will benefit from the increasedoperational flexibility and savings that this deal will provide.”

Under the agreement, TCGS will use approximately 2.8 Bcf ofstorage on the Tennessee and National Fuel pipelines, as well as55,000 MMBtu/d of Tennessee capacity and associated gas supply. TCGS will also meet Yankee’s full fuel requirements for gas supplydelivered on the Tennessee pipeline from the Gulf Coast region.

“This deal is a logical extension of our development strategy inthe Northeast over the last year, which has seen TCGS double itsbusiness to over one Bcf/d,” said Mark Brown, vice president ofmarketing/northeast region, for TCGS.

Yankee Gas Services serves about 183,000 customers in 68Connecticut cities and towns.

TransCanada PipeLines recently signed a three-year agreementwith Semco Energy Gas for gas supply management. Semco also willbuy the majority of its gas supplies from TransCanada for the threeyears of the agreement, which is effective April 1, 1999 (See NGIOct. 9, 1998). LDC Semco has more than 240,000 customers in theUpper and Lower Peninsulas of Michigan. The agreement calls forTransCanada to manage 157.5 MMcf/d of gas transportation on fiveU.S. pipelines on behalf of Semco. TransCanada also will manage 16Bcf of storage for the utility.

Joe Fisher

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