TransCanada announces $1.5bn NGTL System expansion


TransCanada Corporation has announced a $1.5bn expansion of its NOVA Gas Transmission (NGTL) System to connect existing and new supply to incremental intra-basin market demand.

TransCanada president and CEO Russ Girling said: “The NGTL System continues to expand as parties require and contract for greater pipeline capacity to meet the growing demand for clean-burning natural gas from domestic and export markets.

“This new investment brings the capacity expansion programs underway on the NGTL System to more than $9 billion.”

The expansion programme is supported by 1.1 billion ft³ per day of new firm service contracts.

Shippers have executed agreements for 754 million ft³ per day of incremental firm delivery services commencing in April 2022, which will connect Alberta market demand in the power generation, oil sands, petrochemical, industrial and utilities segments.

Concurrently, shippers have also executed 377 million ft³ per day of firm receipt services commencing in November 2021, which will connect incremental Montney and Deep Basin supply to the system.

The terms of the contracts range from eight to 20 years.

The programme comprises 197km of large-diameter pipeline, three compression units, meter stations and associated facilities.

The company expects to file applications with the National Energy Board in the second quarter of 2019 for approvals to construct and operate the facilities.

Construction is expected to commence in the third quarter of 2020, with major capital investment expected in 2021 and 2022.

TransCanada has more than six decades of experience in the development and operation of North American energy infrastructure, including natural gas and liquids pipelines, power generation and gas storage facilities.

The company operates a network of more than 91,900km of natural gas transmission line that covers all major gas supply basins in North America.

TransCanada also provides gas storage and related services with 653 billion ft³ of storage capacity. The company is also an independent power producer and it currently owns or has interests in 5,700MW of power generation in Canada and the US.


Image: A pipeline welder works on an extension of the NGTL System, in Northern Alberta, Canada. Photo: Courtesy of TransCanada.

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