Surrey, BC - 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 said.

 

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 high.
 
Terasen Gas has been developing this project since 2004. Through an ongoing public consultation program, community support for the project remains strong today.

 

The proposed natural gas storage facility will also create substantial mid-Island economic and employment benefits, including:

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 http://www.fortisinc.com/ or http://www.sedar.com/.

 

 

Carol Greaves, Community Relations Manager
Terasen Gas
Phone: (250) 380-5764
E-mail: carol.greaves@terasengas.com

 

Scott Thomson, Vice President, Regulatory Affairs & Chief Financial Officer
Terasen Inc. and Terasen Gas
Phone: (604) 592-7784
E-mail: scott.thomson@terasengas.com