TransCanada Corp. will move forward with a new $2 billion expansion program on its NOVA Gas Transmission Ltd. (NGTL) 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, Can ada and Mexico natural gas pipelines and energy. "This expansion adds to the current $5.1 billion near-term capital program 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 program results from growing producer demand to connect lowcost 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.
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 expansion program will comprise numerous projects that will, in aggregate, include 171 miles of NPS 16 to NPS 48 pipeline, 150 megawatts 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 Q4 2017. Subject to regulatory approvals, construction is expected to start in early 2019, with initial projects expected to be in service in Q4 2019 and final projects in service by Q2 2021.
For more information, visit www.transcanada.com or call (800) 661-3805.