> CO2 Decision - A Win for Everyone

Everybody wins with the new Carbon Dioxide (CO2) Management Service approved on September 24 by the Alberta Energy and Utilities Board (EUB).

"This service allows TransCanada to maintain the flow of approximately 0.9 Bcf of natural gas per day*," says Steve Clark, TransCanada vice-president of Gas Development and director of Sales and Marketing. "Maintaining or increasing these volumes could, in the long run, result in reduced tolls for all Alberta System customers."

"Apache is pleased the EUB has approved the CO2 Management Service. We believe it is fair and equitable to all stakeholders," says Bill Jackson, Apache, Business Development Engineer.

The CO2 Management service was developed in collaboration with the Tolls, Tariffs and Procedures (TTP) group and downstream gas users. The service satisfies the needs of all parties and offers a number of benefits as follows:

PRODUCERS

• won't have to build costly facilities to remove excess CO2 from gas
• will benefit from maximizing volumes on the system, increasing the supply available to markets and minimizing tolls
• with excess CO2 removal capacity, will be able to bid to use that capacity to offset the excess CO2 on the system

DOWNSTREAM GAS USERS

• won't experience any negative impact because CO2 content in excess of two per cent contained in the new receipt volumes will be removed elsewhere on the system
• will see a reduction in CO2 content in the Alberta System from the current level

TransCanada will contract for the CO2 removal with a third party, like Apache, at existing facilities. A fee will be required for the service that is comparable to the costs associated with typical amine extraction.

"Apache, in anticipation of the approval of this service, has installed significant CO2 removal capacity at its Hamburg Gas Plant," explains Bill. "This will enable the removal/blending of CO2 from the Ladyfern area production and meet TransCanada's CO2 specifications. The Apache facility, when combined with the CO2 Management Service means industry will not be required to install as much processing capacity. This means significant saving of capital."

Watch for this new service in early 2003. To subscribe or for additional information, please contact Stella Morin at (403) 920-6844 or Trent van Egmond (403) 920-5893.

* This statement has been changed from "1.6 Bcf per day, or 13 per cent of total system receipts that were previously exceeding the CO2 specification" to "0.9 Bcf of natural gas per day" to better reflect the CO2 Management Service.