Company to Proceed Developing Two Pipelines to Serve Canadians
As the pipeline industry awaits a decision on the Keystone XL project, TransCanada continues to push ahead with plans to expand its oil and gas infrastructure in North America. The company has announced plans to build two new pipelines over the next five years, one to bring crude oil eastward from the Canadian oil sands in the west and another to expand natural gas capacity in northeastern British Columbia.
After a successful open season garnered strong support, TransCanada announced on Aug. 1 that it would proceed with the 1.1 million barrel per day (bpd) Energy East Pipeline. The company secured binding, long-term contracts for 900,000 bpd to transport crude oil from western Canada to eastern Canadian refineries and export terminals. The project is estimated to cost $12 billion (CAD) and expected to be in service by late 2017.
TransCanada announced on Aug. 6 that its subsidiary NOVA Gas Transmission Ltd. (NGTL) has signed agreements with Progress Energy Canada Ltd. for approximately 2 billion cubic feet per day (bcf/d) of firm gas transportation services to underpin the development of a major pipeline extension of the NGTL System. The North Montney Mainline extension will provide additional capacity in response to on increased development of natural gas resources in northeastern British Columbia. The project is estimated to cost $1.5 billion and to be in service by the beginning of 2019.
Both projects still need to complete the regulatory process to move forward.