TransCanada Acquires Crossfield Gas Storage Facility and CrossAlta Marketing Company
November 20 2012 - 04:47PM
Marketwired
TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada)
announced today that it has entered into an agreement to acquire
BP's 40 per cent interest in the assets of the Crossfield Gas
Storage facility. In addition, TransCanada will acquire BP's
interest in CrossAlta Gas Storage & Services Ltd., an
affiliated marketing joint venture between the two companies.
This $210 million transaction will give TransCanada 100 per cent
ownership in the facility located in Crossfield, Alberta, about 50
kilometres north of the City of Calgary. This acquisition adds an
additional 27 billion cubic feet of natural gas storage capacity to
TransCanada's existing portfolio in Alberta. TransCanada has
operated the Crossfield Gas Storage facility since 2011.
"The addition of the Crossfield Gas Storage facility into our
existing portfolio will increase our ability to offer unique
services to our customers in Alberta, and provide another organic
growth platform for our storage business," said Russ Girling,
president and chief executive officer, TransCanada. "This latest
energy infrastructure acquisition enhances TransCanada's ability to
reliably deliver an essential balancing service to the gas markets
in western Canada."
As part of the transaction, TransCanada will acquire BP's base
gas in the facility, all of BP's mineral interests in the
Crossfield area including BP's ownership interest in the Elkton
production unit and related surface land. BP will maintain a
transactional relationship with TransCanada as a storage customer
going forward.
Closing of the transaction is subject to certain conditions
being satisfied and is expected to occur by the first quarter of
2013.
With more than 60 years' experience, TransCanada is a leader in
the responsible development and reliable operation of North
American energy infrastructure including natural gas and oil
pipelines, power generation and gas storage facilities. TransCanada
operates a network of natural gas pipelines that extends more than
68,500 kilometres (42,500 miles), tapping into virtually all major
gas supply basins in North America. TransCanada is one of the
continent's largest providers of gas storage and related services
with approximately 380 billion cubic feet of storage capacity. A
growing independent power producer, TransCanada owns or has
interests in over 10,900 megawatts of power generation in Canada
and the United States. TransCanada is developing one of North
America's largest oil delivery systems. TransCanada's common shares
trade on the Toronto and New York stock exchanges under the symbol
TRP. For more information visit: http://www.transcanada.com/ or
check us out on Twitter @TransCanada.
FORWARD LOOKING INFORMATION
This publication contains certain information that is
forward-looking and is subject to important risks and uncertainties
(such statements are usually accompanied by words such as
"anticipate", "expect", "would" or other similar words).
Forward-looking statements in this document are intended to provide
TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries'
future financial and operation plans and outlook. All
forward-looking statements reflect TransCanada's beliefs and
assumptions based on information available at the time the
statements were made. Readers are cautioned not to place undue
reliance on this forward-looking information. TransCanada
undertakes no obligation to update or revise any forward-looking
information except as required by law. For additional information
on the assumptions made, and the risks and uncertainties which
could cause actual results to differ from the anticipated results,
refer to TransCanada's Management's Discussion and Analysis filed
February 15, 2012 under TransCanada's profile on SEDAR at
http://www.sedar.com/ and other reports filed by TransCanada with
Canadian securities regulators and with the U.S. Securities and
Exchange Commission.
Contacts: TransCanada Media Enquiries: Shawn Howard/Grady
Semmens 403.920.7859 or 800.608.7859 TransCanada Investor &
Analyst Enquiries: David Moneta/Terry Hook/Lee Evans 403.920.7911
or 800.361.6522 www.transcanada.com
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