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January 10, 2006

 

TransGas News Updates on Field Receipts
and status of Regina Compressor Station

 

Since Thursday December 22, 2005, the amount of Saskatchewan produced natural gas transported onto the TransGas pipeline system has consistently surpassed the old record of 772 Terajoules/day set on April 9, 2004. The new all-time record production of 785 TJ/day was achieved on December 23, 2005 and has held very near record levels since then.

 

The 785 TJ of natural gas transported on December 23 is a substantial amount – enough natural gas to heat nearly 6,200 homes for an entire year.

 

“This is great news for TransGas and for our customers as increased flows on the pipeline system help to maintain highly competitive rates for our services,” said Daryl Posehn, Senior Vice President, TransGas. “I would like to thank all TransGas employees who work diligently to tie-in, operate and maintain a safe and reliable transportation system for our customers and who consistently provide excellent customer service.”

 

The last few years have seen an increase in natural gas exploration and development in Saskatchewan driven by the high natural gas price environment, combined with the industry’s continued focus on the province as an attractive place to invest. This increase in activity has also been supported by TransGas continued ability to provide competitive, reliable and flexible service.

 

TransGas has seen increased levels of production both from the Shackleton area of the province, which surpassed 140 TJs/day in late December, as well as from the 17 new TransGas receipt projects completed in other areas of the province this year. The warmer than normal winter weather that we have enjoyed has also led to fewer production problems.

 

TransGas expects to see continued record breaking Saskatchewan production levels throughout the summer of 2006 as producers start getting production results from their 2006 drilling and development programs.

 

In addition, on December 22, 2005, the TransGas Regina Compressor Station returned to full operational status following the completion of a series of detailed engineering assessments, as well as a full-scale test of automated emergency shutdown equipment and procedures.

 

The TransGas Regina Compressor Station was taken out of service December 8, 2005, following an incident at the site involving the release, and subsequent ignition, of high-pressure natural gas. The facility’s emergency shutdown system engaged immediately, as designed. There were no injuries to TransGas personnel on site.

 

Engineering assessments conducted by TransGas concluded the incident was caused by a crack near a weld in a 45° elbow pipe fitting. This fitting is on an 8-inch high-pressure pipeline which has been in operation for between 25 and 30 years. The fitting was subsequently replaced.

 

Throughout this period, TransGas was able to ensure uninterrupted natural gas service to the City of Regina and surrounding area.

 

TransGas, the pipeline transmission subsidiary of SaskEnergy, is continuing to review its inspection and maintenance criteria for similar pipe fittings throughout its system, as part of its extensive and on-going pipeline integrity and maintenance program.

 

For further information, please contact:

Daryl Posehn
Senior Vice President, TransGas
Phone: 777-9567
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