AltaGas Canada Inc. Announces Progress to Reactivate Capacity on Pacific Northern Gas Ltd's Western Transmission Pipeline
Calgary, Alberta--(Newsfile Corp. - July 8, 2019) - AltaGas Canada Inc. (TSX: ACI) ("ACI") today announced that its wholly owned subsidiary Pacific Northern Gas Ltd. ("PNG") has filed an application with the British Columbia Utilities Commission ("BCUC") for approval of a large volume industrial transportation rate required in its proposed process for allocation of reactivated capacity on its western transmission pipeline (the "Application").
"Filing this Application with the BCUC marks a critical step in our process to reactivate and contract the underutilized capacity on PNG's western transmission pipeline," said Jared Green, President and Chief Executive Officer of ACI. "We believe the proposed process will be open, fair, transparent and competitive for customers seeking capacity on PNG's pipeline. Successful reactivation of the pipeline will provide tangible benefits to all of our customers on the western system."
Should the BCUC approve the Application, PNG plans to conduct a binding open season to determine the demand for gas transmission capacity on its system, both existing and prospective, and allocate its existing and prospective capacity of up to approximately 88 MMSCFD. Shippers would have the opportunity to bid on capacity based on either firm Transportation Service Agreements ("TSA") or Transportation Reservation Agreements.
Provided there are sufficient shipper commitments backed by TSAs, PNG would commence system reactivation and recommissioning work to prepare for returning the system back to full utilization. Depending on shipper demands and the requested delivery points, PNG estimates the capital cost for the reactivation, recommissioning and system reinforcement could be up to approximately $120 million. ACI expects to continue utilizing a self-funded financing model.
ACI is a Canadian company with natural gas distribution utilities and renewable power generation assets. ACI serves approximately 130,000 customers, delivering low carbon energy, safely and reliably. For more information visit: www.altagascanada.ca.
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This news release contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "expect", "project", "target", "potential", "objective", "continue", "outlook", "opportunity" and similar expressions suggesting future events or future performance, as they relate to ACI or any affiliate of ACI, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, strategy, projects, opportunities and funding. Specifically, such forward-looking statements included in this news release include, but are not limited to, statements with respect to the following: the reactivation process and benefit to customers; process for determining customer demand and allocating capacity; prospective capacity of the western transmission pipeline; the estimated capital cost for the reactivation, commissioning and system reinforcement and the expected financing model.
ACI's forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: legislative and regulatory environment and process; general economic conditions; demand for natural gas; natural gas supply; and ability of ACI or its subsidiaries to maintain, replace and expand its regulated assets. Applicable risk factors are discussed more fully under the heading "Risk Factors" in ACI's Annual Information Form for the year ended December 31, 2018, which is available on www.sedar.com.
Many factors could cause ACI's actual results, performance or achievements to vary from those described in this news release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and ACI's future decisions and actions will depend on management's assessment of all information at the relevant time. Such statements speak only as of the date of this news release. ACI does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.
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