TransCanada has concluded a long-term, fixed-price open season to transport natural gas on the Canadian Mainline from the Empress receipt point in Alberta, to the Dawn hub located in southern Ontario.

The company claimed that its recent open season has resulted in binding, long-term contracts from Western Canada Sedimentary Basin (WCSB) gas producers to transport 1.5 picojoules a day (PJ/d) of natural gas at a simplified toll of $0.77 per gigajoule (GJ).

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TransCanada president and chief executive officer Russ Girling said: “Today, WCSB producers are facing a much more challenging landscape than they have in the past.

“This new offering helps our customers compete more effectively by utilising existing capacity on the Canadian Mainline, and demonstrates the importance and value of this system to deliver their products to markets in Eastern Canada and the north-east US.”

Girling further added: “This long-term agreement provides significant benefits for our customers, shareholders, communities and governments that depend on the economic benefits that are generated by natural gas exploration, production and transportation."

"Today, WCSB producers are facing a much more challenging landscape than they have in the past."

In addition to utilising existing capacity and pipelines already in operation, the incremental revenue generated from this offering will make the Canadian Mainline more competitive.

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In this revised, long-term, fixed pricing open season, the customers have signed long-term binding contracts to transport 1.5 PJ/d of natural gas from the Empress receipt point in Alberta to the Dawn hub in southern Ontario.

The contract tenure is ten years and has early termination rights that can be exercised following the initial five years of service upon payment of an increased toll for the final two years of the contract.

This service can be provided entirely with existing facilities, and the targeted in-service date is 1 November.

The firm intends to file an application for regulatory approval with the National Energy Board in April.

TransCanada transports more than 25% of the natural gas consumed across North America.