TransCanada moves ahead with $2-billion NGTL system expansion

TransCanada Corp. will move forward with a $2-billion expansion of its NOVA Gas Transmission Ltd. (NGTL) system, adding to the system’s current $5.1 billion near-term capital program.

The expansion will be comprised of numerous projects that will, in aggregate, include 273 km of NPS 16 to NPS 48 pipeline, 150 Mw of compression at five compressor stations, new meter stations, and other associated facilities. Applications for the various projects will be filed with Canada’s National Energy Board starting in the fourth quarter.

Subject to regulatory approvals, construction is expected to start in early 2019, with initial projects expected to be in service in fourth-quarter 2019 and final projects in service by second-quarter 2021.

The expansion arises from growing producer demand to link Montney, Duvernay, and Deep basin production to the NGTL system and move it to intra-basin and export markets. Shippers have recently signed 2.6 bcfd in total new firm supply contracts at multiple existing and proposed new receipt points across the system.

The 24,012-km NGTL system gathers 75% of Western Canada Sedimentary Basin gas production in Alberta and northeastern British Columba, TransCanada says.

The firm 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. All 381 MMcfd of available expansion service was awarded under long-term contracts.