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TRANSCANADA PIPELINES TO BUILD NORTHERN ONTARIO POWER PLANTS

 TRANSCANADA PIPELINES TO BUILD NORTHERN ONTARIO POWER PLANTS
 CALGARY, Alberta, Oct. 21 /PRNewswire/ -- TransCanada PipeLines (Toronto, Montreal, Vancouver, Calgary: TRP) today announced it will proceed with the development of combined cycle power generation plants at North Bay and Kapuskasing, Ontario. The plants will produce 150 megawatts of electricity a day -- enough power to supply 80,000 homes -- and will use natural gas and waste heat from adjacent company compressor stations as energy sources.
 Each project will create 200 jobs during the two-year construction period and will bring 25 permanent jobs to each of these two Northern Ontario communities. The cost of each plant is $180 million. Power purchase agreements have been arranged with Ontario Hydro and final contracts will be signed shortly.
 "Several Ontario companies will get an economic shot-in-the-arm from these projects," said Dave Russell, vice president of power generation and projects. "We've signed agreements with Westinghouse Canada Inc. to supply design, engineering and construction, as well as all equipment for the two power plants. Local companies in Hamilton, Cambridge, Toronto, North Bay and Kapuskasing will also benefit."
 Major turbine components will be manufactured at Westinghouse's Hamilton, Ontario, facility. Under the "turnkey" arrangement with TransCanada, Westinghouse will contract construction services from Nicholls Radtke of Cambridge, Ontario, and UMA Engineering Ltd. of Toronto will perform site engineering for the projects.
 TransCanada has received all necessary environmental and municipal approvals. The company expects the Ontario Energy Board to set a date soon for the final regulatory review. This review concerns an agreement reached between Centra Gas and TransCanada for a gas distribution bypass charge to be paid by the company to Centra, which holds the franchise to serve local markets.
 Once approvals are received, construction at both sites is scheduled to begin in 1993. Commissioning and operation will begin in 1995.
 Backgrounder
 North Bay and Kapuskasing Power Generation Projects
 Why is TransCanada PipeLines involved in power generation?
 TransCanada PipeLines is in the natural gas business. It is one of North America's largest natural gas transportation and marketing companies with assets in excess of $7 billion.
 Headquartered in Calgary, Alberta, TransCanada owns and operates the 12,200 km pipeline system that carries western Canadian natural gas to markets in Canada and the United States. It has interests in three American and three Canadian pipelines linked to its system that access U.S. midwest, northeast and west coast markets. Western Gas Marketing, a wholly owned subsidiary, is the largest marketer of western Canadian gas and has the largest supply pool in North America.
 TransCanada has invested in many businesses that complement its core activities of transporting and marketing natural gas. Typically, these businesses create markets for gas transportation and marketing. Cancarb Ltd., another wholly owned subsidiary, is one example. Cancarb uses natural gas to manufacture medium thermal carbon black products sold around the world.
 Why does TransCanada promote the use of natural gas for power generation?
 TransCanada believes that electricity generated by natural gas is the most safe, reliable and economical way of providing power to communities that need it.
 Natural gas is the cleanest burning fossil fuel. It's abundant and economical. Gas-fired plants use less land, less water and release up to 80 percent fewer emissions than coal- or oil-fired plants.
 TransCanada's Canadian power generation projects use natural gas and hot exhaust gases from adjacent pipeline compressor stations as a fuel source -- gases that would otherwise disappear into the atmosphere -- to meet local energy needs in an environmentally friendly way.
 Is TransCanada involved in other power generation projects?
 TransCanada has a 40 percent interest in the Ocean State Power Project, a 500-megawatt, natural gas-fuelled power plant in Rhode Island. Ocean State is a joint vet?ure involving TransCanada and several New England electric power utilities. The facility uses 100 million cubic feet of Canadian natural gas a day and generates enough electricity to meet the needs of 500,000 people. Since operations began in October 1991, Ocean State has doubled Rhode Island's electrical output.
 In Ontario, TransCanada owns a 36-megawatt power generation facility. Nipigon Power Plant uses natural gas and hot exhaust gases from the adjacent TransCanada compressor station and produces electricity to supply 20,000 homes with power. The $52 million plant has brought significant benefits to the Nipigon area by creating 35 jobs during the two-year construction phase and 13 permanent jobs. Commercial operation began in May 1992. Electricity produced by the plant is sold to Ontario Hydro.
 How does TransCanada contribute to the economic well-being of Canada?
 Since 1989, TransCanada has been involved in one of the largest capital expansion projects in Canadian history. By the end of 1992, it will have invested more than $4 billion in the Canadian economy -- $2 billion in Ontario alone -- by adding pipeline and compression power to its system to meet the growing demand for natural gas in central Canadian and U.S. markets.
 This expansion has created thousands of person-years of employment and generated economic spin-offs that impact positively on the construction, manufacturing and service sectors. The benefits range from new orders for Canadian steel producers who make the pipeline to "no vacancy" signs at motels that provide accommodation for workers on TransCanada construction sites.
 The North Bay and Kapuskasing power plants are further evidence of TransCanada's economic contribution to the country as a whole and to the provinces where it does business.
 -0- 10/21/92
 /CONTACT: Frank Dabbs of TransCanada PipeLines, 403-267-8525/
 (TRP.) CO: TransCanada PipeLines Limited ST: Alberta IN: OIL SU:


KJ -- LA015 -- 2960 10/21/92 13:56 EDT
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Date:Oct 21, 1992
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