NGI The Weekly Gas Market Report
TransCanada Pipelines Monday canceled part of its C$403 millionsystem expansion project on its Canadian Mainline because of aninability to resolve negotiations with a local tribe of Indians,yet the pipeline company insists other parts of the expansion willcontinue. TransCanada would not disclose the nature of thedisagreement except to say the parties could not resolve aboriginaland treaty rights issues as well as future economic opportunityissues.
Construction of a C$45 million, 18.6-mile pipeline loop nearHearst, ON, was canceled, pipeline officials said, becausenegotiators with TransCanada and the Constance Lake First Nation(CLFN) could not reach agreements in time to start construction.The project was expected to be completed before the spring thaw.Gary Davis, a TransCanada spokesman, said the stoppage will incursome undisclosed costs, but the bulk of the C$45 million will bediverted to other projects.
The company expressed confidence the expansion program’s goal todeliver 100 MMcf/d of new gas to the eastern side of the continentby November will be achieved. “We negotiated with Constance LakeFirst Nation through the weekend,” said Bob Reid, president,TransCanada Energy Transmission. “We have the flexibility to workaround the situation, and have decided to do so.”
Officials at TransCanada said the loop, which would have beenlocated three miles southeast of the Constance Lake reserve, wasbeing built to aid expansion for 2000, and it still could beconstructed for that year if future negotiations are successful.Before this incident, TransCanada expected to have 108 MMcf/dflowing through 97 miles of new pipe, and provide another 26 MMcf/dthrough transportation services available in the marketplace byNov. 1. “Now I guess it will have to flow through 78 miles ofpipe,” Davis said.
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