January 19, 2001
Company, Limited Partnership and Enbridge Inc. today announced a
proposed pipeline development initiative to supply natural gas
from offshore Nova Scotia to markets in New Brunswick, Quebec and
Ontario.
The new initiative consists of two separate but related projects.
Gaz Métropolitain and Enbridge will build a new 262-kilometre
pipeline in Quebec called the Cartier Pipeline. It will be
constructed paralleling the St. Lawrence River from the New
Brunswick-Quebec border to Quebec City where it will interconnect
with the existing Canadian gas transmission grid. The Cartier
Pipeline will be constructed and owned by an equal partnership
between Gaz Métropolitain and Enbridge.
The Cartier Pipeline will be connected to offshore Nova Scotia gas
supplies by a new pipeline that would be constructed in New
Brunswick, running from the existing Maritimes & Northeast
Pipeline north to the New Brunswick-Quebec border near Edmundston.
This pipeline would be constructed and owned by Maritimes &
Northeast Pipeline.
Gaz Métropolitain and Enbridge have a development coordination
agreement with Maritimes & Northeast Pipeline, and are working
with that company to develop plans for the New Brunswick portion
of the overall pipeline system.
The new pipelines would provide initial access to natural gas
and/or enhance supply diversity and security to various customers
in Ontario, Quebec and New Brunswick, as envisaged in the joint
cooperation agreement signed earlier this year by the Governments
of Quebec and New Brunswick to encourage pipeline development in
the area.
The two pipelines intend to provide initial access to natural gas
for customers in northern New Brunswick, who will be served by
Enbridge Gas New Brunswick, and customers along the St. Lawrence
south shore who will be served by Gaz Métropolitain. In addition,
existing customers of Gaz Métropolitain in Quebec and of Enbridge
Consumers Gas in Ontario will benefit from increased diversity in
sources of supply.
Gaz Métropolitain and Enbridge Consumers have retained Duke Energy
Marketing Limited Partnership for the aggregation of the base gas
volume supplies of the Project.
Both pipelines are subject to regulatory review and approval. The
anticipated project timetable would involve filing of applications
for both pipelines with the National Energy Board in the spring of
2002 for a late 2004 in-service date.
Preliminary cost of the Cartier Pipeline is estimated at $270
million. The initial capacity of the Cartier Pipeline will be 184
million cubic feet per day, of which 164 million cubic feet per
day will be contracted to meet the anticipated needs of Gaz
Métropolitain and Enbridge Consumers Gas, with the balance
available for other parties. The capacity of the pipeline can be
expanded cost-effectively to 340 million cubic feet per day.
Robert Tessier, President and Chief Executive Officer of Gaz
Métropolitain, the initiator of the project, said, "The additional
supply security and diversity provided by a link into the East
Coast basin is of strategic importance to Gaz Métropolitain and
our Quebec gas customers. We are delighted to be undertaking the
Cartier Pipeline in partnership with Enbridge, one of our major
shareholders."
Patrick D. Daniel, President & Chief Executive Officer of
Enbridge, said, "This project strongly complements Enbridge's
existing natural gas distribution investments in Ontario, Quebec
and New Brunswick. In particular, it would significantly assist
in extending gas distribution to more customers in New Brunswick,
where we continue to work with the provincial government to ensure
the viability of our development plan for a provincial gas
distribution network."
With sales of more than $1.6 billion and over 1300 employees, Gaz
Métropolitain is an important Quebec utility and Canada's third
largest natural gas distributor. It serves more than 150,000
customers in nearly 259 municipalities in Quebec and also operates
in the northeastern United States. Its underground network of gas
transmission lines spans over 9,600 km.
Enbridge Inc. is a leader in energy transportation, distribution
and services. Enbridge operates, in Canada and the U.S., the
world's longest crude oil and liquids pipeline system. The
company also is involved in natural gas transmission through the
Alliance and Vector Pipelines; is building a gas distribution
network in the province of New Brunswick; and owns and operates
Canada's largest natural gas distribution company, which provides
gas in Ontario, Quebec and New York State. Additional information
about Enbridge is available on the company's web site at