TransCanada signs gas supply agreement with distributors

Union Gas, Gaz Métro and Enbridge Gas Distribution have signed an agreement with TransCanada PipeLines to supply natural gas from the Union Gas Dawn Market Hub in south-western Ontario.

The deal comprises a revised framework for TransCanada’s mainline tolls and the proposed Kings North project. It is expected to provide a new natural gas transportation path by the constrained Parkway to the Maple transportation corridor located near Toronto and Ontario. It offers greater access and affordable supplies of natural gas to consumers in eastern Ontario and Quebec.

Gaz Métro president and CEO Sophie Broc said that the agreement with TransCanada gives consumers access to affordable and diverse gas supplies and long-term certainty on transportation tolls.

"Access to affordable energy helps businesses be competitive, supports local economic growth and keeps costs low for families and businesses in Ontario and Quebec," Broc added.

The agreement resolves disputes with local natural gas distribution companies in Ontario and Quebec related to tolls and services in the region.

TransCanada president and CEO Russ Girling said that a mutually agreeable solution has been reached that allows for the expansion of the Eastern portion of the system to meet the changing needs of Ontario and Quebec.

"It takes significant time and effort to work out these agreements and I would like to thank the parties involved for the commitment to finding a workable solution," Girling said.

The companies also held discussions to form an agreement with TransCanada for the proposed Energy East project, which will convert a portion of TransCanada’s Mainline system from natural gas to oil.