... Demand Leads to $570 Million NGTL System Expansion

Demand Leads to $570 Million NGTL System Expansion

A TransCanada Corp. subsidiary has secured enough interest to build a $570 million pipeline system expansion by 2018. NOVA Gas Transmission Ltd. (NGTL) has signed contracts for approximately 2.7 billion cubic feet per day (Bcf/d) of new firm natural gas transportation service in western Canada.

“Our NGTL System is sitting on top of extensive natural gas supplies, making it well-positioned to unlock the resource and reliably and efficiently link it to growing markets,” said TransCanada president and CEO Russ Girling in a Nov. 16 statement. “The system has been operating at capacity, and more capacity is needed in these key areas that support the growth of the prolific gas resource in the Western Sedimentary Basin.”

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Significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand.

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“Capturing these incremental volumes and constructing the new facilities will ensure NGTL can continue to efficiently and competitively meet the future natural gas transportation needs of our customers,” Girling added. “The expansion of the NGTL System is an important part of TransCanada’s industry leading $48 billion capital growth plan that includes $23 billion of new natural gas pipelines.”

The 2018 expansion program will increase the overall investment on the NGTL System beyond the already announced $7.5 billion of projects. Approximately $2.8 billion of these projects have received regulatory approval, with $800 million under construction and an additional $1.7 billion of facilities are under regulatory review.

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The expansion includes multiple projects that total 88 km (55 miles) of 20- to 48-in. diameter pipeline, one new compressor, approximately 35 new and expanded meter stations and other associated facilities. Applications to construct and operate the various components of the expansion program will be filed with the National Energy Board between the second quarter of 2016 and the fourth quarter of 2016. Subject to regul0atory approvals, construction is expected to start in 2017, with all facilities expected to be in service in 2018.

The 2018 NGTL expansion program represents the minimum system additions required to meet current contracts. Additional expansions may be required following a full assessment of our aggregate system requirements to be completed by the end of 2015.

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