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TransCanada expands its NGTL system capacity

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World Pipelines,


TransCanada Corporation (TransCanada) announced that it will move forward with a new US$2 billion expansion programme on its NOVA Gas Transmission Ltd. (NGTL) system, based on new contracted customer demand for approximately 3 billion ft3/d of incremental firm receipt and delivery services.

"Between now and 2021, TransCanada is investing approximately US$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 adds to the current US$5.1 billion near term capital programme for the NGTL system, further enhancing our ability to meet the needs of our customers for safe, reliable and competitive gas transmission infrastructure."

This expansion programme results from growing producer demand to connect low cost 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 billion ft3/d in total new firm supply contracts at multiple existing and proposed new receipt locations across the system.

TransCanada also successfully 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 million ft3/d of available expansion service was awarded under long term contracts.

"The NGTL system remains a key component of TransCanada's high quality portfolio of energy infrastructure assets that continue to produce solid results across various market conditions," said Johannson. "Our strategy is to maintain and optimise NGTL's competitive position and to focus on growing our established network to connect growing volumes of Western Canadian Sedimentary Basin natural gas to key market areas."

The expansion programme will be comprised of numerous projects that will in aggregate, include 273 km (171 miles) of NPS 16 - 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 the National Energy Board starting in 4Q17. Subject to regulatory approvals, construction is expected to start in early 2019, with initial projects expected to be in service in 4Q19 and final projects in service by 2Q21.

Read the article online at: https://www.worldpipelines.com/project-news/15062017/transcanada-expands-its-ngtl-system-capacity/


 

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