On January 7, 2015, the Régie de l’énergie du Québec (Québec Energy Board) released its opinion on the production and transportation supply of natural gas required in order to meet the medium and long term needs of Québec consumers. This opinion was prepared at the request of the Minister of Energy and Natural Resources and the Minister responsible for the Plan Nord. The opinion followed a public consultation process during which stakeholders and expert representatives made written and oral submissions to the Québec Energy Board.

In its opinion, the Board forecasts the residential, commercial, industrial and transportation demand for natural gas in Québec from 2015 to 2030 as well as transportation capacity and peak demand in Québec for natural gas during such period. The Board also examines natural gas production supply options from both within and outside Québec as well as natural gas transportation supply options both involving and without the TransCanada Pipelines Limited Energy East Pipeline project.

The Board estimates that between now and 2030, the demand for natural gas in Québec will increase by about 2% per year. Based on this estimate, the Board concludes that the only reliable supply option is to purchase natural gas outside of Québec and to bring it to Québec through the TransCanada Pipelines Limited Energy East Pipeline. In addition, the Board deems the Energy East Pipeline project desirable to the extent it may serve as a means to convert other natural gas transmission assets that are currently under-used in Québec. The Board also believes that such conversion may help limit rises in the transportation rates of natural gas.

The opinion, a summary thereof and documents and transcripts related to the public consultation are available on the Québec Energy Board website at the following address (in French only):

http://publicsde.regie-energie.qc.ca/_layouts/publicsite/ProjectPhaseDetail.aspx?ProjectID=277&phase=1&Provenance=A