January 18, 2008

TransGas Expanding Natural Gas Storage Service at Landis

TransGas today announced work has begun on a new natural gas storage development at its facility near Landis, Saskatchewan. TransGas is expanding its storage service at Landis by developing three new underground natural gas storage caverns to meet the growing needs of the natural gas industry in Saskatchewan.

The cavern development at Landis will be complete in 2011 and is part of a $40 million service expansion that also includes enhancements to the capabilities of TransGas' storage fields at Unity and Bayhurst, Saskatchewan. The two existing caverns at Landis were developed in the 1970s and will continue to serve the natural gas needs of residential, farm, business and industrial customers in the region.

"Our government believes there are targeted opportunities within Saskatchewan for Crowns such as TransGas to grow their business, further develop the energy industry, and support our vibrant economy," said Randy Weekes, MLA for Biggar, on behalf of Ken Cheveldayoff, Minister of Crown Corporations. "While construction of these caverns has just begun, it is my understanding this 20 per cent increase in TransGas' total storage capacity is already fully contracted, three years before the project is even complete, which demonstrates the demand for this service in our province."

This project will create economic activity in the Landis area over the next three years while generating new storage revenue annually for TransGas.

Natural gas storage services offered by TransGas provide an essential part of safe, reliable service in an extreme climate such as Saskatchewan. During the winter season, strategically-located storage facilities provide quick access to natural gas to supplement gas provided through the pipeline system.

"TransGas is leveraging its employees' expertise in natural storage to find ways to expand its business in Saskatchewan, while continuing to provide the safety and reliability which are the core of its operations," Weekes said.

TransGas, the pipeline transmission and storage subsidiary of SaskEnergy, operates 26 storage caverns and two natural gas storage fields across Saskatchewan, as well as 14,000 kilometres of high-pressure natural gas transmission pipeline. TransGas pioneered the use of underground caverns to store natural gas with the creation of its first caverns at Melville in 1964.

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