Business
Terasen Gas receives conditional regulatory approval for natural gas storage facility
SURREY, BC, Nov. 15 /CNW/ - Terasen Gas (Vancouver Island) Inc. (TSX:FTS) has received conditiona...
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nSURREY, BC, Nov. 15 /CNW/ - Terasen Gas (Vancouver Island) Inc. (TSX:FTS)\nhas received conditional approval from the British Columbia Utilities\nCommission (BCUC) to construct and operate a natural gas storage facility on\nVancouver Island.\n\n\n"With today's decision, we're now in a position to finalize contracts for\nmaterials and resources in order to complete our construction cost estimates.\nThis work will ensure the final project cost estimates will meet the\nconditions provided in the decision," said Randy Jespersen, President and CEO\nof Terasen Inc.\n\n\n"The BCUC did award the rate of return on equity associated with Terasen\nGas Vancouver Island, but did not approve the adjustment requested in our\napplication," Jespersen said.\n\n\nThe proposed facility, supplied by the company's existing pipeline\nsystems, would allow Terasen Gas to meet current and future gas demands on\nVancouver Island and throughout our service territory by storing liquefied\nnatural gas. The 142-hectare project site, known as Mt. Hayes, is located\napproximately six kilometres northwest of Ladysmith.\n\n\n"This new storage facility would allow Terasen Gas to become more\nself-sufficient in meeting its winter peaking requirement by reducing its\nreliance on other storage facilities located in the Pacific Northwest," said\nDoug Stout, Vice President of Marketing and Business Development for Terasen\nGas. "It would also allow for more efficient use of Terasen Gas's existing\npipeline systems and result in improved reliability and security of supply\nduring planned or unplanned system interruptions."\n\n\nThe company has been developing this project since 2004. Through an\nongoing public consultation program, community support for the project\ncontinues to be strong.\n\n\nThe natural gas storage facility would store 1.5 billion cubic feet of\nliquefied natural gas, with the proposed structure measuring approximately\n60 metres in diameter and about 50 metres high.\n\n\nIt would also create substantial mid-Island economic and employment\nbenefits, including:\n\n\n- local construction expenditures - $50 million\n- local, direct employment - approximately 120 person years\n- nine full-time operations jobs at the facility\n\n\nEstimated project and associated costs range from $175 million to\n$200 millio...