It’s been a year since the completion of its C$11 billion mergerwith Nova Corp., but TransCanada Pipelines finally came through onpromised savings yesterday. The pipeline company said it will give$70 million in merger-related savings to its pipeline customersthrough “targeted operating cost reductions.” An agreement on thereductions was filed with Canada’s National Energy Board and theAlberta Energy and Utilities Board yesterday.
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NOVA said a leak discovered in a flange assembly early Thursdayon its North Lateral in eastern Alberta is curtailing up to 500MMcf/d of upstream production. The line usually flows 1.6-1.7Bcf/d, a spokesman said. He estimated the leak will require 24-48hours of repair time, but no schedule has been set.
TransCanada PipeLines subsidiary NOVA Gas Transmission (NGTL)filed its new pricing structure proposal with the Alberta Energyand Utilities Board (AEUB) yesterday. The gas transportation tollson TransCanada’s Alberta system are consistent with the memorandumof understanding (MOU) reached recently with the CanadianAssociation of Petroleum Producers. Announced March 24, the MOUdetails a new distance- and quantity-based pricing structure toreplace the current postage-stamp pricing regime for tolls on theAlberta system. The application also reflects input gathered duringan extensive stakeholder consultation process that began in late1996. The filing replaces an application NGTL put forth to the AEUBin April 1998.