Nova Gas Transmission subsidiary Nova Pipeline Ventures Limitedpartnership announced plans to build a $40 million natural gaspipeline to serve industrial customers in the Fort McMurray region.The 67-mile, 20- and 30-inch diameter pipeline will start at NGT’sBuffalo Lake compressor station on the Leige lateral innortheastern Alberta and extend to Suncor Energy oil sandsupgrading facility and potentially to another facility owned byNovagas Canada Ltd. (NCL). Initial capacity of the pipeline isexpected to be 250 MMcf/d of gas.

“This new pipeline will serve customer demand for transportationof incremental natural gas to fuel the region’s growing oil sandsactivity,” said NOVA Pipeline Ventures President Eric Shelton.

NOVA Ventures also said it is meeting with other potentialcustomers to discuss the viability of expanding the line. Construction of the new pipeline will begin in the fourth quarter,pending regulatory approval, with completion scheduled for the endof the first quarter of 1999. The company expects to recover coststhrough a customized price structure with customers.

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