CALGARY, ALBERTA–(Marketwired – Feb. 22, 2017) – News Release – TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced it has launched an Open Season for binding commitments on a revised, long-term, fixed-price proposal to flow natural gas along the Canadian Mainline from the Empress receipt point in Alberta to the Dawn hub in Southern Ontario. The launch of this Open Season follows ongoing discussions with Western Canadian Sedimentary Basin (WCSB) producers, and is expected to close on March 9, 2017.
“This long-term fixed price proposal for the Canadian Mainline builds on our past offering and input from our customers. We are pleased to offer this opportunity for WCSB producers to compete with emerging supplies of natural gas from the Marcellus and Utica basins,” said Stephen Clark, TransCanada’s senior vice president and general manager, Canadian Natural Gas Pipelines.
“TransCanada continues to offer a 10-year term and a targeted total subscription of 1.5 PJ / day at a simplified single rate toll of $0.77/GJ,” added Clark. “While we have held extensive discussions with customers and have received a positive response, it is important that these threshold conditions are met for TransCanada to advance this offering.”
This proposal provides WCSB producers with lower cost access to the high-value markets served by the Dawn trading hub and will help them address changing market dynamics. This proposal does not impact current contracts that are already in place on the Canadian Mainline system. The targeted in-service date is November 1, 2017, and details of the Dawn Long Term Fixed Price open season can be found here.
Provision of the service is conditional on, among other things, TransCanada receiving National Energy Board approval on terms and conditions satisfactory to TransCanada. Interested parties may submit binding bids for transportation capacity during the Open Season which will close on March 9 at 11 a.m. MST.