Press Release
December 22, 2004
Proposed GSX pipeline project cancelled
Other Options More Cost Effective at Ensuring Reliable Supply for Vancouver Island
PROVINCE-WIDE – BC Hydro and Williams have today announced the cancellation of the Georgia Strait Crossing (GSX) pipeline project. The $340 million natural gas pipeline had been proposed by the two companies in 2000 as the best way to meet the demand for gas transportation along its United States route and to natural-gas fired electricity generation facilities on Vancouver Island.
"A large capacity pipeline like GSX is no longer a competitive supply option because the large gas supply requirements it was designed to meet have not materialised," said Dawn Farrell, Executive Vice President, Generation. "There are other lower cost alternatives to meet these gas requirements which, together with the fuel switching capability now available at the Island Cogeneration Plant (ICP) in Campbell River, means there can be enough reliable natural gas supply on the Island to meet required demands without GSX."
"Cancelling the project now will stop all further expenditures on the project and also eliminate it as an issue in ongoing regulatory processes relating to Terasen and the Duke Point Power Project."
In April 1998, BC Hydro sought private sector proposals to help it meet the natural gas requirements for ICP, a proposed natural gas fired (then to be situated in Port Alberni) and a possible third facility somewhere else on Vancouver Island. BC Gas (now Terasen), Centra/ West Energy and Williams Gas Pipelines submitted proposals. Williams' proposal was deemed the most cost effective at that time.
"Our goal now remains the same as it was when we starting looking at GSX – to ensure the lowest cost, most reliable electricity for our customers on Vancouver Island," added Farrell. "There are a range of lower cost alternatives to GSX, including a number with Terasen. These will ensure that on-Island electricity generating facilities – including the proposed Duke Power Project in Nanaimo – have enough natural gas supply to maintain their firm reliable supply of electricity for our customers even during the most critical winter months."
Contact:
| Stephen Bruyneel |
| Director, Corporate Communications and Public Affairs |
| Phone: 604 623-4344 |
| stephen.bruyneel@bchydro.com |
| Beverly Chipman |
| Williams |
| Phone: 801 584-7048 |
