NORTH CANADIAN ANNOUNCES GAS SUPPLY AGREEMENT
NORTH CANADIAN ANNOUNCES GAS SUPPLY AGREEMENT CALGARY, Jan. 30 /PRNewswire/ -- North Canadian Oils Limited
(AMEX: NCD) through its wholly owned subsidiary North Canadian Marketing, has signed a 15 year gas supply agreement with Kamine/Besicorp Natural Dam Limited Partnership for 12 million cubic feet per day commencing on Nov. 1, 1993. North Canadian will receive an initial starting price of US$1.56 per MMBtu at the Alberta border, escalating at predetermined rates over the contract term. This agreement will provide the company with an attractive price hedge against current low gas prices and a steady source of cash flow.
The natural gas will fuel a 49 megawatt cogeneration plant being built in Gouverner, N.Y. by Besicorp Group Inc. of Albany, N.Y. and Kamine Development Corp of Newark, N.J. The gas will be transported to New York via the NOVA, TransCanada PipeLines, Iroquois PipeLine and St. Lawrence Pipeline systems. The Natural Dam contract represents one of three long term gas supply agreements that North Canadian holds with the Kamine/Besicorp partnership. The partnership plans to build two additional 80 megawatt cogeneration facilities, one in Beaver Falls, N.Y., and the other in Syracuse, N.Y. North Canadian will supply the natural gas for both projects at a rate of 16 million cubic feet per day to each facility. North Canadian Oils Limited is a senior oil and gas exploration, production, marketing and power cogeneration company. NCO's common shares trade on the Toronto and Montreal stock exchanges in Canada and the American Stock Exchange in the United States. -0- 1/30/92 /CONTACT: Garry Ramsden-Wood, senior vice president-marketing, 403-261-4344, or Robert F. Spragins, vice president-supply development, 403-261-4341, both of North Canadian Oils Limited/ (NCD) CO: North Canadian Oils Limited ST: Alberta IN: OIL SU: SM -- NY014 -- 5071 01/30/92 08:29 EST
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|Date:||Jan 30, 1992|
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