Portland Natural Gas Transmission System (PNGTS) and Maritimes & Northeast Pipeline, L.L.C. (Maritimes) reached a Joint Facilities Expansion Settlement Agreement, effective Nov. 29, 2006.

“The agreement lays the framework for the future expansion of our existing joint facilities,” says David Haag, rates and tariff specialist. “We want to make sure that we’re well positioned to transport any incremental gas supply that becomes available through the PNGTS system to the growing New England markets at economic rates, whether it’s from liquefied natural gas (LNG), supply from Alaska or Mackenzie, or wherever.”

The proposed settlement provides:

• PNGTS with the right for up to 250,000 decatherms per day (Dth/day) of economic expansibility
• That the sharing of operating costs on the Joint Facilities (including compressor fuel) shall continue to be governed by the Ownership Agreement
• As a result of compression being constructed by Maritimes, PNGTS will be allocated 20,000 Dth/d of new incremental "Operationally Available Capacity"

David says PNGTS is pleased with the settlement, as it provides PNGTS and Maritimes with clarity regarding how future expansions will be implemented, significantly reducing the need for future negotiation of certain conditions during expansion projects.

TransCanada owns about 62 per cent of PNGTS and is the operator of the 472 km (295 miles) interstate natural gas pipeline. PNGTS and Maritimes jointly own the last 171 km (107 miles) of pipeline facilities that run from Westbrook, Maine to Dracut, Massachusetts.

For more information, visit the PNGTS website or contact David Haag at 603.559.5515.