In the August Issue . . .

 Ladyfern - Timely Connection
 Fort Saskatchewan - Delivering a Supply Alternative
 Ebilling on the Mainline - Things just got easier!

 Alberta System Aligns Commodity and Demand
 Organization Announcements for Customer Sales and Service

 


Ladyfern - Timely Connection
Spanning the border of Northeast British Columbia and Northwestern Alberta, the Ladyfern area has been a hot topic in the natural gas industry. With the ultimate potential of Ladyfern reserves still to be determined, industry analysts estimate it could contain as much as one trillion cubic feet of gas, making Ladyfern the biggest gas find in Western Canada in the past 15 years.

The Globe and Mail newspaper featured Ladyfern in its Report On Business on July 9, citing the quick connection of gas to existing pipeline systems as a reason for the area's success. "In today's volatile natural gas market, factors such as speed of development and proximity to pipelines shouldn't be underestimated," said David Parkinson, a business reporter for the newspaper. And indeed, TransCanada has worked diligently with Ladyfern producers, Murphy Oil, Apache Canada, AEC, and CNRL, to ensure that over 80% of Ladyfern production is directed into TransCanada's Alberta System transmission facilities, and that it is connected in a "just in time" fashion in step with producers' plans.

According to TransCanada Producer Team Manager John Dunn, the Ladyfern area is currently producing approximately 500 mmcf/d, with the potential to produce significantly more by 2002. On an annualized basis, Ladyfern has contributed approximately 350 mmcf/d to the total 2001 WCSB supply growth. TransCanada estimates total supply growth for 2001 to be in the 500 to 600 mmcf/d range. Total flow on TransCanada's Upper and Central Peace River Design Sub-Areas in the northwest part of the province now exceeds 2 bcf/d and planned system expansion for spring 2002 will grow that number to approximately 2.6 bcf/d. Adds John, "I can't think of too many pipeline systems that have TransCanada's capability to accommodate these types of volumes in such a short period of time. To me it really drives home just how robust and extremely well positioned our transmissions assets are."

TransCanada's planned expansion in the area for spring 2002 is also very economical. The estimated capital cost will be approximately $73 million and add about 500 mmcf/d of new capacity. Says Producer Team Manager, Dave Schultz, "Our System Design group has worked diligently to optimize the expansion, and keep costs low. The four compression additions required for the expansion are actually relocations from other parts of the Alberta System where, unlike the northwest part of the province, we are seeing lower utilization rates and production declines".

Al Jamal, TransCanada's Manager of Gas Supply, has been monitoring the overall impact of Ladyfern and Northwest supply growth on total WCSB production. "Ladyfern is a great supply success story, however apart from Ladyfern there has been modest supply growth in the WCSB in the last year," says Al. "To put things in perspective, roughly 20 Ladyfern wells have so far added roughly 350 mmcf/d while another 10,000 gas wells elsewhere have added only 200 to 300 mmcf/d to the 2001 WCSB production growth estimate. Even with robust production growth from Ladyfern, we continue to be on track with our projection of 0.9 to 1.1 bcf/d of WCSB production growth by 2002 over the 2000 levels."

For more information on this story, please contact John Dunn at (403) 920-5566, e-mail john_dunn@transcanada.com, or Dave Schultz at (403) 920-5574, e-mail dave_schultz@transcanada.com.

 

View the Globe and Mail article in the online version of Update.


Fort Saskatchewan - Delivering a Supply Alternative

The industrial corridor of Fort Saskatchewan and surrounding area is one of the fastest growing gas markets in the country, with projected growth of approximately 500 million cubic feet in the next five years.

Many companies in the area use natural gas as a feedstock for their production processes or as fuel for power plants. With recently added production capacity and proposed expansions, these companies require an additional supply of natural gas.

"Customers have been eager for an alternative supply choice in Fort Saskatchewan for some time now and appreciate a timely competitive solution," says Don Bell, Manager, Western Sales, TransCanada PipeLines. "We have an opportunity to provide this solution to the Fort Saskatchewan area, one of the hottest natural gas markets in the country."

TransCanada is proposing to extend the Fort Saskatchewan Mainline of its Alberta System to provide customers, with an alternative supply choice to the Fort Saskatchewan market. As well, this extension has potential benefits for all Alberta System customers such as increasing the general attachment of supply on the Alberta system, which could reduce tolls for all customers.

TransCanada has executed agreements with three customers in the Fort Saskatchewan area for approximately 175 mmcf/d of firm service transportation. TransCanada plans to file an application this summer with the Alberta Energy and Utilities Board (EUB). The proposal will include a 70 kilometre extension of 20-inch pipe from the Alberta System into the Fort Saskatchewan area.

The expected completion of the pipeline extension into Fort Saskatchewan is May 1, 2002, pending regulatory approvals.

For more information, please contact Don Bell at (403) 920-5560, e-mail don_bell@transcanada.com or Brent Diemert at (403) 920-5567, e-mail brent_diemert@transcanada.com.

 


Ebilling on the Mainline - "Things just got easier"

TransCanada is continually striving to make things easier for our customers. Ebilling, which has been available on the Alberta system since October 2000, will soon be available on the Canadian Mainline system. Mainline customers will have the ability to view, print and forward their TransCanada invoice as well as download them into Excel.

Additionally, customers will have access to the billing backup reports that can be downloaded and emailed to others. As TransCanada publishes the invoices and reports for ebilling, customers will soon have the ability to view the historical information for up to one year online.

Ebilling is an alternative way for customers to access and handle their account information. The many benefits of ebilling include:

Lower Administrative Costs

  • Reduce manual data entry
  • Download data to a gas marketing system or Excel
  • Delivery of invoice is not dependent on external sources (i.e. courier, Canada Post)

Convenience

  • Access to information faster
  • Access to invoices online
  • Access to billing backup reports online
  • Ability to send the invoice or portions of it directly to other people

Other

  • More environmentally friendly - reduce paper, by using the information online

Customers can contact their company's NrG Administrator to assign them access to the ebilling service. The ebilling service for the Mainline is available through:

  • www.transcanada.com/mainline/customeracct/index.html - DENISE CHECKING
  • www.nrgexpressway.com/tcpl/index.htm

TransCanada is committed to providing a quality online invoice service for their customers. Any suggestions for future enhancements are welcomed. Please send your comments to online_billing@transcanada.com or contact Denise Morey at (403) 920-5516, e-mail denise_morey@transcanada.com.


Alberta System Aligns Commodity and Demand

With TransCanada developing a new gas management system and implementing numerous process improvements, customers were provided with an opportunity to align the commodity and demand for invoicing and reporting purposes. With the current process, an invoice dated the 20th of a month contains demand charges from the previous month and commodity charges from the month previous to the demand month.

In order to accomplish the alignment, industry had to adopt a new calendar (view online) that establishes timelines for the reporting of data. At the July 10, 2001 Tolls, Tariff & Procedures Committee (TTP) meeting, customers agreed to implement a new industry calendar for:

  • the distribution of Alberta System month end receipt measurement
  • the reporting of Common Stream Operator (CSO) month end receipt allocations
  • the distribution of Alberta System gas balances
  • the distribution of Alberta System invoices

The new industry calendar works backward from the industry pay day and contains the following guidelines:

  1. Distributes invoices two and half work days prior to industry pay day
  2. Provides TransCanada two work days to prepare and distribute invoices after finalizing monthly gas balances
  3. Provides TransCanada two work days to prepare and distribute monthly gas balances after receiving month end receipt allocations from CSO's
  4. Continues to provide CSO's adequate time to complete and report month end receipt allocations
  5. Distributes receipt measurement on the fifth work day of each month

"Customers have requested that the commodity and demand be invoiced for the same month, but the current industry calendar and information systems did not support the alignment. The new industry calendar and systems will allow for TransCanada to invoice for a month's commodity and demand on the same invoice, making it more convenient for the customer," said Grant Gilbert, Senior Analyst with TransCanada.

The commodity and demand alignment as well as the new industry calendar are targeted for a January 2003 implementation, conditional on TransCanada having the required information systems available.

In future years, TransCanada will work with industry representatives, as it has in the past, to finalize the annual industry calendar using the guidelines from the approved resolution.

For information on the commodity and demand alignment or industry calendar, please contact Grant Gilbert at (403) 920-5395, e-mail grant_gilbert@transcanada.com. For information on the TTP process, please contact Dave Hands at (403) 920-5838, e-mail dave_hands@transcanada.com.

 


Organization Announcements for Customer Sales and Service

" I would like to announce some organizational changes that have recently taken place with respect to my leadership team. I would like to acknowledge the dedication and excellent work of Jeff Rush and Dave Cornies in their roles of serving our customers and wish them all the best as they pursue new opportunities.

As well, I welcome Steve Clark and John Van der Put to our team and look forward to their contribution in helping TransCanada deliver timely and cost effective solutions to our customers."

Max Feldman, Senior Vice-President, Customer Sales and Service

Jeff Rush - Jeff's previous role was leading the Sales and Marketing group for TransCanada's Alberta, B.C. and Canadian Mainline pipeline systems. He now assumes responsibility for TransCanada's initiative to build a Mackenzie Valley pipeline. Jeff will also manage TransCanada's position in Tuscarora Pipeline and other gas development activities in the Rocky Mountain region of the United States. In addition, he will manage existing and future initiatives associated with TransCanada PipeLine Ventures. Jeff can be reached at [403] 920-5819.

Steve Clark - Steve assumes Jeff Rush's former role in leading the Sales and Marketing group. He will continue to play an important role in certain western business development initiatives. Steve can be reached at [403] 920-2018.

Dave Cornies - Dave's previous role was leading the System Design group. He will take on a transitionary role, focusing on several special assignments, including the evaluation of TransCanada's northern development transportation strategy, key regulatory proceedings and facility expansions. Dave can be reached at [403] 920-5104.

John Van der Put - John assumes Dave Cornies' former role, leading the System Design group. His previous role was in TransCanada's Strategy and Planning group. John can be reached at [403] 920-2023.