TransCanada sanctions $2 bln investment in NGTL
TransCanada will expand its NOVA Gas Transmission system, based on new contracted customer demand for approximately 3 Bcf/d of incremental firm receipt and delivery services.
“Between now and 2021, TransCanada is investing approximately $2 billion in new pipeline infrastructure to connect Western Canadian natural gas production to key markets within the basin and across North America,” said Karl Johannson, TransCanada’s executive vice-president and president, Canada and Mexico natural gas pipelines and energy.
This expansion program results from growing producer demand to connect Montney, Duvernay and Deep Basin production to the NGTL system and move it to premium intra-basin and export markets.
Numerous shippers have recently signed over 2.6 Bcf/d in total new firm supply contracts at multiple existing and proposed new receipt locations across the system, the company said.
TransCanada also concluded a recent expansion open season for incremental service at the Alberta/British Columbia export delivery point, which connects Canadian supply through downstream TransCanada pipelines to Pacific Northwest, California and Nevada markets. The open season was over-subscribed, and all 381 MMcf/d (408 TJ/d) of available expansion service was awarded under long-term contracts.
The expansion program will be comprised of numerous projects that will on aggregate, include 273kilometerss (171 miles) of NPS 16 to NPS 48 pipeline, 150 MW of compression at five compressor stations, new meter stations and other associated facilities.
Subject to regulatory approvals, construction is expected to start in early 2019, with initial projects expected to be in service in the fourth quarter 2019 and final projects in service by the second quarter 2021.