TransCanada PipeLines will be continuing its steady pace ofexpansions with a $984 million construction program in 1999 to add275 MMcf/d in delivery capacity to eastern Canada and the U.S.Midwest and Northeast.

The pipeline company filed with the National Energy Board for560 kilometers of pipeline loop and four compressors, saying thecapacity is fully supported by firm supply, committed demand andunconditional transportation precedent agreements. The serviceshould be in place by Nov. 1, 1999.

The additional capacity will increase TransCanada’s throughputto 7.6 Bcf/d. The company noted that including the proposed projectTransCanada will have expanded its delivery capability by about 1.2Bcf/d between November, 1996 and November, 1999. Adding in the 700Bcf/d of new capacity to be in service this year by Northern BorderPipeline, 30% owned by TransCanada, drives the three-year totalincrease in deliveries from western Canada to 1.9 Bcf/d. “This hasresulted in the differential between Alberta and NYMEX marketprices narrowing by 50% in the forward markets,” the company said.

TransCanada estimates rolling in the capacity costs willincrease the Eastern Zone toll by $0.007/gj in the expansion’sfirst full year of operation, with the Eastern Zone toll for 2000estimated at $0.958/gj (excluding fuel), an increase of 0.7%.

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