MONTREAL — TransCanada Corp. has resolved a dispute with three major Canadian natural gas distributors over its proposed $12-billion Energy East pipeline project.
The Calgary-based company says it has signed an agreement in principle with Gaz Metro, Union Gas and Enbridge Gas Distribution that ensures natural gas consumers in Eastern Canada will have sufficient capacity and reduced natural gas transmission costs should the project proceed.
Gas Metro is Quebec's largest natural gas distributor and the other two companies have major systems in Ontario.
TransCanada (TSX:TRP) says it will size the Eastern Mainline Project to fulfil all natural gas contracts, including new ones for 2016 and 2017, and add 50 million cubic feet per day of additional capacity.
Natural gas customers will also receive a $100 million rate reduction through 2050.
The natural gas distributors say their concerns have been resolved and that the cost of converting an existing segment of cross-Canada natural gas pipe to oil won't be borne by their customers.
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