SURREY, BC, Nov. 15 /CNW/ - Terasen Gas (Vancouver Island) Inc. (TSX:FTS)
has received conditional approval from the British Columbia Utilities
Commission (BCUC) to construct and operate a natural gas storage facility on
"With today's decision, we're now in a position to finalize contracts for
materials and resources in order to complete our construction cost estimates.
This work will ensure the final project cost estimates will meet the
conditions provided in the decision," said Randy Jespersen, President and CEO
of Terasen Inc.
"The BCUC did award the rate of return on equity associated with Terasen
Gas Vancouver Island, but did not approve the adjustment requested in our
application," Jespersen said.
The proposed facility, supplied by the company's existing pipeline
systems, would allow Terasen Gas to meet current and future gas demands on
Vancouver Island and throughout our service territory by storing liquefied
natural gas. The 142-hectare project site, known as Mt. Hayes, is located
approximately six kilometres northwest of Ladysmith.
"This new storage facility would allow Terasen Gas to become more
self-sufficient in meeting its winter peaking requirement by reducing its
reliance on other storage facilities located in the Pacific Northwest," said
Doug Stout, Vice President of Marketing and Business Development for Terasen
Gas. "It would also allow for more efficient use of Terasen Gas's existing
pipeline systems and result in improved reliability and security of supply
during planned or unplanned system interruptions."
The company has been developing this project since 2004. Through an
ongoing public consultation program, community support for the project
continues to be strong.
The natural gas storage facility would store 1.5 billion cubic feet of
liquefied natural gas, with the proposed structure measuring approximately
60 metres in diameter and about 50 metres high.
It would also create substantial mid-Island economic and employment
- local construction expenditures - $50 million
- local, direct employment - approximately 120 person years
- nine full-time operations jobs at the facility
Estimated project and associated costs range from $175 million to
$200 million. Construction is expected to begin in April 2008 with the
facility coming into service by late 2011.
Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and
Terasen Gas (Vancouver Island) Inc., both indirect wholly owned subsidiaries
of Fortis Inc. Fortis Inc., the largest investor-owned distribution utility in
Canada, serves almost two million gas and electric customers and has
$10 billion of assets. Its regulated holdings include Terasen Gas and electric
utilities in five Canadian provinces and three Caribbean countries.
Fortis Inc. owns non-regulated hydroelectric generation assets across Canada
and in Belize and upper New York State. It also owns hotels and commercial
real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock
Exchange and trade under the symbol FTS. Additional information can be
accessed at www.fortisinc.com or www.sedar.com.
Terasen Gas may include forward-looking statements in this media release
which reflect management's expectations regarding the Company's future growth,
results of operations, performance, business prospects and opportunities.
Wherever possible, words such as "anticipate," "believe," "expects," "intend"
and similar expressions have been used to identify the forward-looking
statements. These statements reflect management's current beliefs and are
based on information currently available to the Company's management. Certain
material factors or assumptions have been applied in drawing the conclusions
contained in the forward-looking statements. These factors or assumptions are
subject to inherent risks and uncertainties surrounding future expectations
generally. Such risk factors or assumptions include, but are not limited to,
regulation, natural gas prices and supply, operational risks, general economic
conditions, weather, capital resources, loss of service area, licences and
permits, environment, insurance, labour relations and human resources. Terasen
Gas cautions readers that a number of factors could cause actual results,
performance or achievements to differ materially from the results discussed or
implied in the forward-looking statements. These factors should be considered
carefully and undue reliance should not be placed on the forward-looking
statements. For additional information with respect to certain of these risks
or factors, reference should be made to the Company's continuous disclosure
materials filed from time to time with Canadian securities regulatory
authorities. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
For further information:
For further information: Media contact: Carol Greaves, Community
Relations Manager, Terasen Gas, Phone: (250) 380-5764, E-mail:
firstname.lastname@example.org; Scott Thomson, Vice President, Regulatory
Affairs & Chief Financial Officer, Terasen Inc. and Terasen Gas, Phone: (604)
592-7784, E-mail: email@example.com