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TransCanada Corporation (TRP)
Quanta Services Selected by TransCanada for Joint Venture
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Wednesday, November 02, 2011 4:45:23 PM
Quanta Services Selected by TransCanada for Joint Venture to Build Keystone XL Pipeline
Today : Wednesday 2 November 2011
Quanta Services, Inc. (NYSE: PWR) today announced that TransCanada Corporation (TSX: TRP, NYSE: TRP) has selected Price Gregory Services, Incorporated, a Quanta Services operating unit, to be part of a joint venture called MPS Constructors, LLC (MPS), that will build 1,179 miles of pipeline and related infrastructure from Hardisty, Alberta, to Steele City, Neb., as part of the TransCanada Keystone XL Pipeline project. MPS consists of three pipeline construction companies: Michels Corporation, Price Gregory Services, Incorporated and Sheehan Pipeline Construction Company. The project remains subject to TransCanada obtaining all required approvals and completing the contract with MPS. The scope of services to be provided by each joint venture member is still being defined and the finalization of the terms of the joint venture and associated contracts are in process. Quanta anticipates, however, that it will play a significant role in the construction of the pipeline infrastructure for the Keystone XL Pipeline project once all approvals and agreements are finalized.
"The Keystone XL Pipeline is the largest individual infrastructure project on the horizon in the industries we serve. This project is expected to directly create thousands of construction and manufacturing jobs in the United States, including at least 2,000 construction jobs for Quanta alone," said Jim O'Neil, president and chief executive officer of Quanta Services. "Quanta brings more than 100 years of pipeline construction experience and what we believe is the highest quality and most experienced workforce in the industry to this project. We are committed to building this pipeline safely and in compliance with the high level of environmental requirements established by TransCanada. We are proud to have been selected by TransCanada, a long-time customer, to participate in a project that is expected to positively impact the country in so many ways. Further, our participation in this project reflects TransCanada's confidence in our ability to execute on a project that is meaningful both to TransCanada and the United States."
The proposed Keystone XL Pipeline project totals approximately 1,661-miles of 36-inch crude oil pipeline that would begin at Hardisty, Alberta, and extend southeast through Saskatchewan, Mont., South Dakota and Nebraska. The pipeline would then incorporate the existing Keystone Pipeline Phase II through Nebraska and Kansas to serve markets at Cushing, Okla., before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas, to serve the Port Arthur, Texas, marketplace. As described above, MPS will build 1,179 miles of pipeline and related infrastructure from Hardisty, Alberta, to Steele City, Neb. TransCanada has indicated that if construction of the pipeline begins early in 2012, the Keystone XL Pipeline is expected to be operational in the second half of 2013.
"Within days of receiving regulatory approval, the Keystone XL project would create approximately 20,000 U.S. jobs. The construction jobs created for Quanta as a result of their involvement in the project is a tangible example of the employment benefits this project will provide," said Alex Pourbaix, TransCanada's President, Energy & Oil Pipelines. "This $7 billion, privately funded project is expected to create 118,000 spin-off jobs in local areas while the pipeline is being built, as well as $20 billion of economic benefit to the United States during construction and should contribute more than $5 billion in property taxes to the communities it will pass through over the lifetime of the pipeline. We believe going through the most extensive review process that any crude oil pipeline has ever undergone, will result in the safest pipeline ever built in North America. Quanta is one of the leading pipeline construction companies in North America and given the importance of this project it was a natural choice to be a part of the project joint venture."
About TransCanada Corporation
With more than 60 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 57,000 kilometres (35,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com and follow us on Twitter @TransCanada.
About Quanta Services
Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, natural gas and pipeline and telecommunication industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. Additionally, Quanta licenses point-to-point fiber optic telecommunications infrastructure in select markets and offers related design, procurement, construction and maintenance services. With operations throughout North America and in select international markets, Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope.
This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to: expectations that TransCanada Corporation obtains all necessary approvals for the Keystone XL project; the scope, services, term and results of the project to be awarded to the joint venture and the portion thereof to be performed by Price Gregory; any expected value of the intended contract with TransCanada; the expected work to be performed by third parties, including the members of the joint venture other than Price Gregory; the intentions of the parties to enter into definitive documentation regarding the project and the final terms and conditions of such documentation; the anticipated time frame for commencement and completion of the project; and the various potential benefits of the Keystone XL project; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond our control, including, among others, TransCanada's inability to obtain all necessary approvals for the project, resulting in delays or cancellations of the project; the parties' ability to negotiate and finalize the definitive agreements for the project as well as the joint venture arrangements; successful performance and timely completion of the intended contract and the project awarded thereunder; Price Gregory's reliance on the other joint venture members for performance of the work on the project and its responsibility for liabilities arising from their potential failure to perform; failure to realize the anticipated value of the intended contract; the potential for incurrence of damages or other claims for schedule delays or performance shortfalls, including as a result of warranty claims following completion; the failure of any of the parties subcontractors to perform their obligations, including warranty obligations, under their subcontracts; adverse changes in economic conditions and trends in relevant markets; delays, reductions in scope or cancellations of the intended contract or the project awarded thereunder, including as a result of weather, regulatory or environmental issues; future growth in the energy industry; dependence on fixed-price contracts and the potential to incur losses with respect to this intended contract; the inability of customers to pay for services; cancellation and termination provisions that may be present in the intended contract; and other factors affecting the business of the Quanta generally, including risks detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2010, Quanta's Quarterly Reports on Form 10-Q for each quarter ended in fiscal year 2011 and any other documents of Quanta filed with the Securities and Exchange Commission (SEC). Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made regarding the subject matter of this press release by any third party. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's web site at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov.
Quanta Services, Inc.
Kip Rupp, CFA
Terry Cunha / Shawn Howard
SOURCE Quanta Services, Inc.
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