TransCanada Estimates Natural Gas Demand To Outpace Traditional Supply In Report To U.S. House Committee
Tuesday June 10, 11:50 am ET
CALGARY, Alberta--(BUSINESS WIRE)--June 10, 2003--TransCanada Corporation (TSX:TRP - News; NYSE:TRP - News) told a U.S. House Committee in Washington, D.C., today that the company expects the growth in natural gas demand in North America to outpace supply from traditional gas sources over the next several years.
Hal Kvisle, TransCanada's chief executive officer, was testifying at the U.S. House Committee on Energy and Commerce hearing on natural gas supply and demand. Mr. Kvisle represented TransCanada and Foothills Pipe Lines Ltd.
"We believe natural gas from Canada's North and from Alaska, as well as liquefied natural gas, are all required in the next decade if North America is to have competitive gas prices," said Mr. Kvisle at the hearing. "We estimate natural gas demand growth of more than 15 billion cubic feet per day by 2012, but supply growth from traditional North American sources is not expected to be more than 5 billion cubic feet per day."
Mr. Kvisle said natural gas from the Mackenzie Delta in Canada's North and from Prudhoe Bay in Alaska are both required to help meet increased demand. Foothills and TransCanada support the development of two separate pipelines to move northern gas to markets. The Mackenzie Valley pipeline, which is expected to go first, could be in service by late 2008. Gas from Prudhoe Bay could be flowing south by late 2011, moving along the Alaska Highway and across Canada under the existing Canada/U.S. treaty and the Northern Pipeline Act. The integration of Mackenzie Delta and Prudhoe gas into the existing Canadian and U.S. pipeline grids will bring substantial benefits to both Western Canadian and northern producers, through more efficient use of existing infrastructure.
Foothills holds the certificates awarded by the Government of Canada to construct the Canadian portion of the Alaska Highway natural gas pipeline project. Last month TransCanada announced the purchase of the remaining share of Foothills it did not already own. Pending regulatory approvals, TransCanada will own 100 per cent of Foothills.
TransCanada is a leading North American energy company. We are focused on natural gas transmission and power services with employees who are expert in these businesses. Our network of approximately 38,000 kilometres (24,000 miles) of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. TransCanada has interests in more than 4,000 megawatts of power -- an equal amount of power can meet the needs of about four million average households. Our common shares trade under the symbol TRP on the Toronto and New York stock exchanges. Visit us on the Internet at www.transcanada.com for more information.
FORWARD-LOOKING INFORMATION
Certain information in this news release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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