TC Pipelines, L.P.

NASDAQ:  TCLP

 

            TC Pipelines, L.P. was formed in 1998 by TransCanada PipeLines Limited to acquire, own, and participate in the management of U.S. based pipeline assets.  The partnership owns a 30% general partner interest in the Northern Border Pipeline Company.  The other 70% interest is held by a separate, unaffiliated PTP, Northern Border Partners.  TC Pipelines also owns a 49% general partner interest in the Tuscarora Gas Transmission Company, which it acquired from TCPL Tuscarora Ltd., an indirect subsidiary of TransCanada.  These interests are the partnership’s only material assets.

 

Northern Border Pipeline Company

 

T The Northern Border Pipeline Company owns a 1,249-mile United States interstate pipeline system that transports natural gas from the Montana-Saskatchewan border to natural gas markets in the Midwestern United States.  This pipeline system connects with multiple pipelines, which provide more than 40 shippers with access to the various natural gas markets served by those pipelines.  Initially constructed in 1982, the pipeline has undergone several expansions and extensions, the most recent in 2001.  In the year ended December 31, 2003, Northern Border Pipeline transported approximately 22% of the total amount of natural gas imported from Canada to the United States.

 

The pipeline system has pipeline access to natural gas reserves in the western Canadian sedimentary basin in the provinces of Alberta, British Columbia, and Saskatchewan in Canada, as well as the Williston Basin in the United States.  It also has access to synthetic gas produced at the Dakota Gasification plant in North Dakota.

 

The system consists of 822 miles of 42-inch diameter pipe designed to transport 2,374 million cubic feet per day from the Canadian border to Ventura, Iowa; 30-inch diameter pipe and 36-inch diameter pipe, each approximately 147 miles in length, designed to transport 1,484 million cubic feet per day in total from Ventura, Iowa to Harper, Iowa; and 226 miles of 36-inch diameter pipe and 19 miles of 30-inch diameter pipe designed to transport 844 million cubic feet per day from Harper, Iowa to a terminus near Manhattan, Illinois (Chicago area) ; and 35 miles of 30-inch diameter pipe designed to transport 545 mmcf/d from Manhattan, Illinois to a terminus near North Hayden, Indiana.  Along the pipeline there are 16 compressor stations with total rated horsepower of 499,000 and measurement facilities to support the receipt and delivery of gas at various points.  Other Northern Border facilities include four field offices and a microwave communication system with 51 tower sites.

 

At its northern end, the pipeline system is connected to TransCanada's majority-owned Foothills Pipe Lines Ltd. system in Canada, which is connected to the Alberta system, owned by TransCanada, and the pipeline system owned by Transgas Limited in Saskatchewan.  The pipeline system also connects with facilities of Williston Basin Interstate Pipeline at Glen Ullin and Buford, North Dakota, facilities of Amerada Hess Corporation at Watford City, North Dakota and facilities of Dakota Gasification Company at Hebron, North Dakota in the northern portion of the pipeline system.

 

The pipeline system serves more than 40 firm transportation shippers with diverse operating and financial profiles. Based upon shippers' contractual obligations, as of December 31, 2003, 94% of the firm capacity is contracted by producers and marketers. The remaining firm capacity is contracted to local distribution companies (5%) and interstate pipelines (1%).  All of Northern Border Pipeline's capacity was under contract through December 31, 2003 and, assuming no extensions of existing contracts or execution of new contracts, approximately 70% and 59% is under contract through December 31, 2004 and 2005, respectively. 

 

Tuscarora Gas Transmission Company

 

The Tuscarora Gas Transmission Company owns a 2240-mile, 20-inch diameter, United States interstate pipeline system that originates at an interconnection point with facilities of Gas Transmission Northwest Corporation (GTN) near Malin, Oregon and runs southeast through northeastern California and northwestern Nevada. The Tuscarora pipeline system terminates near Wadsworth, Nevada. Deliveries are also made directly to the local gas distribution system of Sierra Pacific Power Company, a subsidiary of Sierra Pacific Resources. Along its route, deliveries are made in Oregon, northern California and northwestern Nevada.

 

The system has a contracted capacity of approximately 180 mmcf/d of natural gas.  Tuscarora has firm transportation contracts for over 98% of its capacity, including contracts held by Sierra Pacific Power for 68.1% of the total available capacity, the majority of which expires on November 30, 2015. 

 

TC Pipelines is traded on NASDAQ under the symbol TCLP.  For additional information, contact the investor relations department at:

            1-877-290-2772 (toll free)

Fax: (508) 871-7047

E-mail: [email protected]

 

or visit TC Pipelines’ web site at http://www.tcpipelineslp.com.

 

Financial Information from 2003 10-K

(in thousands, except per unit amounts)

 

 

2003

2002

 

 

 

Market value*

$350,100

$303,800

Current assets

$7,500

$6,400

Net property, plant & equipment

$0

$0

Total assets

$288,100

$286,000

Current liabilities

$6,100

$600

Long-term debt

$0

$11,500

Partners’ capital

$282,000

$273,800

Revenues

$49,800

$47,500

Operating income

$48,100

46,000

Net income

$48,000

$45,500

Net income/unit

$2.63

$2.50

Distribution / unit

$2.28

$2.08

High unit price

$33.70

$27.88

Low unit price

$24.74

$21.30

 
*As of June 30, 2003 and June 28, 2002

 

 

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