The Sponsors of the Commonwealth Pipeline Project Announce the Execution of Binding Precedent Agreements with Anchor Shippers
Inergy Midstream, L.P. (NYSE: NRGM); UGI Energy Services, Inc., a wholly-owned subsidiary of UGI Corporation (NYSE: UGI); and Capitol Energy Ventures Corp., a wholly-owned subsidiary of WGL Holdings, Inc. (NYSE: WGL), today announced that UGI Energy Services, Inc. and Capitol Energy Ventures Corp. have each executed binding precedent agreements for firm transportation capacity on the Commonwealth Pipeline. These anchor shippers have agreed to purchase firm transportation capacity on the Commonwealth Pipeline for a ten-year period at negotiated rates, upon and subject to the terms and conditions set forth in the precedent agreements.
Energy and Natural Resources Financing for the Shale Gas Project in Canada
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement totaling up to 650 million Canadian dollars (JBIC portion) with Cutbank Dawson Gas Resources Ltd. (CDGR), a subsidiary of Mitsubishi Corporation (MC) in Canada. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank, Ltd.
This loan will finance capital investments required of CDGR in connection with its subscription of 40% interest in a partnership which owns the shale gas assets in the Montney land in British Columbia, plus additional potential lands tapping the Cadomin and Doig geological formations. Encana Corporation, Canada's largest natural gas producer, is the operator and managing partner of this partnership.
Canada is endowed with vast shale gas reserves and has great potential as a new natural gas supplier for the markets in the Asia-Pacific region. The participation of MC in this project to secure gas interests in North America will contribute to Japan's energy security by diversifying the natural gas supply sources and easing the demand-supply balance in the Asian liquefied natural gas (LNG) markets.
MC is also planning to produce LNG in its production facilities that are going to be built on the western coast of British Columbia by using the natural gas produced from this shale gas project and the shale gas project in the Cordova Embayment*1, and to export the output to Japan and the Asian region. This project is expected to make Canada, which is politically stable and a relatively short distance from Japan, a new LNG supply source, thereby contributing to the diversification of Japan's LNG supply sources.
JBIC will continue to actively support Japanese businesses that promote the development and acquisition of energy resources by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions.
Irving Oil set to deliver natural gas in Nova Scotia
Irving Oil announced today that it will be making natural gas available for the first time to commercial customers in parts of Nova Scotia that currently do not have access to natural gas pipelines. The Nova Scotia Government’s recent announcement that the market for delivered natural gas will remain open and competitive means Irving Oil will begin servicing natural gas customers in the province.
TransCanada Selected by Shell and Partners to Develop Multi-Billion Dollar Natural Gas Pipeline to Canada's West Coast
TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) is pleased to announce that it has been selected by Shell Canada Limited (Shell) and its partners to design, build, own and operate the proposed Coastal GasLink project, an estimated $4-billion pipeline that will transport natural gas from the Montney gas-producing region near Dawson Creek, British Columbia (BC) to the recently-announced LNG Canada liquefied natural gas export facility near Kitimat, BC. The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited. Shell and TransCanada are working toward the execution of definitive agreements on the Coastal GasLink project.