TC PipeLines, LP announces GTN XPress to enhance market access for growing WCSB supply and allow additional market penetratio...
01 November 2019 - 9:30PM
News Release – TC PipeLines, LP (NYSE: TCP) (TC PipeLines or the
Partnership) is pleased to announce that its Gas Transmission
Northwest, LLC (GTN) interstate pipeline system will move forward
with its GTN XPress project for approximately $335 million.
This project will both increase the reliability of existing
transportation service and provide up to 250,000 Dth/d of
additional firm transportation service on the full path of the GTN
system from Kingsgate, Idaho to Malin, Oregon.
Along with TC Energy Corporation’s system expansions upstream,
GTN XPress will enhance market access and reliability for growing
Western Canadian Sedimentary Basin (WCSB) supplies and allow
additional market penetration along GTN’s system in the Pacific
Northwest. GTN XPress has been approved by the Board of Directors
of TC PipeLines GP, Inc., the Partnership’s general partner (the
General Partner), and is expected to be completed through a
multi-phase construction process by November 2023.
“The successful open season for incremental capacity
demonstrates the significant continued interest out of the WCSB to
secure access to high value downstream markets. Additionally,
local distribution companies in the Pacific Northwest are looking
at the WCSB to diversify their supply sources,” said Nathan Brown,
President of the General Partner. “GTN XPress reflects TC
PipeLines’ and GTN’s commitment to providing customers timely and
reliable access to these markets through appropriate facility
replacements, expansions and services.”
GTN XPress reflects the optimal combination of horsepower
replacements and other reliability work with incremental brownfield
compression facilities at stations along GTN’s existing system
footprint. The project’s reliability and horsepower
replacement work is anticipated to be in service by the end of 2021
and will account for more than three quarters of the total project
cost. These costs are expected to be recovered in recourse
rates. The work associated with the incremental firm capacity
is anticipated to be commercially phased into service through
November 2023 and is fully underpinned by fixed negotiated rate
contracts with an average term in excess of 30 years beginning in
2022. The incremental capacity is expected to generate
approximately $25 million in revenue annually when fully in
service.
The project is subject to normal regulatory and permitting
approvals, which we expect to be obtained in the normal course as
the project progresses.
Funding for the project will be accomplished using a combination
of new term debt at GTN together with equity contributions to GTN
from the Partnership. TC PipeLines has existing capacity to
fund these contributions utilizing a combination of its existing
cash together with borrowings under its revolving credit
facility.
About TC PipeLines, LP
TC PipeLines, LP is a Delaware master limited partnership with
interests in eight federally regulated U.S. interstate natural gas
pipelines which serve markets in the Western, Midwestern and
Northeastern United States. The Partnership is managed by its
general partner, TC PipeLines GP, Inc., a subsidiary of TC Energy
Corporation (NYSE: TRP). For more information about TC PipeLines,
LP, visit the Partnership’s website at www.tcpipelineslp.com.
Cautionary Statement
This news release includes certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. These forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are
beyond the Partnership’s, General Partner’s and management’s
control. An extensive list of factors that could affect
future results are discussed in the TC PipeLines, LP Annual Report
on Form 10-K and other reports and documents filed from time to
time with the Securities and Exchange Commission. The
Partnership and its General Partner undertake no obligation to
update or revise any forward-looking statement to reflect new
information or events.
Media Enquiries:Hejdi Carlsen / Jaimie
Harding403.920.7859 or 800.608.7859
Unitholder and Analyst Enquiries: Rhonda
Amundson877.290.2772investor_relations@tcpipelineslp.com
PDF
available: http://ml.globenewswire.com/Resource/Download/b2b83c2e-adb8-411f-83d6-12047e691481.
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