SURREY, BC, June 5 /CNW/ - Terasen Gas (Vancouver Island) Inc. (TSX:FTS)
filed an application today with the British Columbia Utilities Commission
(BCUC) seeking approval to construct and operate a natural gas storage
facility on Vancouver Island. Estimated project and associated costs range
from $175 million to $200 million. If approved, the natural gas storage
facility will come into service by late 2011.
The proposed storage facility will allow Terasen Gas to meet current and
future gas demands, both on Vancouver Island and across the Lower Mainland by
storing liquefied natural gas. It will also allow 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 or in
times of high demand.
The proposed project site, known as Mt. Hayes, is located approximately
eight kilometres north of Ladysmith, on 142 hectares to be purchased by
Terasen Gas (Vancouver Island) Inc.
"This project plays an integral role in the regional distribution of
natural gas," said Doug Stout, Terasen Gas Vice President Marketing and
Business Development. "As a regional resource, it will ensure our customers
have access to the natural gas they need for their homes and businesses."
Improving storage capability on Vancouver Island means Terasen Gas can
purchase natural gas during summer months when natural gas prices are lower.
The stored gas will then be used during winter months when consumer use and
market prices are typically higher.
"This new storage facility will 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," Stout
The application submitted Monday to the BCUC is seeking approval for
construction of a 1.5 billion cubic foot storage facility. The size of the
proposed structure is now 50 per cent larger over what was previously
envisioned, measuring approximately 60 metres in diameter and about 50 metres
Terasen Gas has been developing this project since 2004. Through an
ongoing public consultation program, community support for the project remains
The proposed natural gas storage facility will also create substantial
mid-Island economic and employment benefits, including:
- local construction expenditures - $50 million
- local, direct employment - approximately 120 person years
- indirect local effects of goods and services supply and spin-off -
290 person years
- nine full-time operations jobs at the facility
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
approximately $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