Liquefied Natural Gas (LNG)

With the North American demand for gas forecasted to exceed the traditional basin supply, new sources of gas are being pursued.

Liquefied Natural Gas (LNG) is expected to make up 15 per cent of the gas supply in North America by 2015, and TransCanada is well positioned to connect markets to LNG.

Our existing gas pipeline infrastructure can deliver greater volumes of natural gas with lower levels of capital investment because we focus on terminal sites near our assets.

We seek partners with access to LNG supplies and our focus is on regasification terminals supported by long-term fee-for-service contracts.

PROPOSED PROJECTS

TransCanada is actively pursuing two proposed LNG projects, the Broadwater Energy and the Cacouna Energy projects.

Together, the projects are capable of regasifying a combined total of 1.5 bcf/d of natural gas into the eastern Canadian and north eastern U.S. markets.

Broadwater Energy

• Joint venture with Shell
• Located at offshore of New York State in Long Island Sound
• Capable of receiving, storing and regasifying imported LNG
• Average natural gas send-out capacity of approximately one Bcf/d.
• More information: www.broadwaterenergy.com

Cacouna Energy

• Joint venture with Petro-Canada,
• Located at Gros Cacouna harbour on the St. Lawrence River
• Capable of receiving, storing and regasifying imported LNG
• Average natural gas send-out capacity of approximately 500 mmcf/d.
• More information: http://www.energiecacouna.ca/en

ABOUT LNG

• Natural gas is available outside of North America and is not accessible by pipelines. Natural gas can be imported from distant sources in the form of LNG.
• Since LNG occupies only a fraction (1/600) of the volume of natural gas, and takes up less space, it is more economical to transport across large distances and can be stored in larger quantities.
• LNG is a price-competitive source of energy that could help meet future economic needs in North America.
• The major stages of LNG production are:
•  exploration and natural gas production,
• liquefaction (conversion of natural gas into a liquid state for transport),
• shipping by LNG tanker and
• regasification (warm LNG to natural gas for transport through pipeline systems).