CALGARY, A.B. — TransCanada Corporation says it is going ahead with a $2.4-billion expansion of its NGTL natural gas system in Western Canada.
The company says NGTL recently completed an open season that was oversubscribed. TransCanada says shippers have executed binding agreements for one billion cubic feet per day of expansion capacity for firm service that will start in November 2020 and April 2021.
“The successful open season shows strong industry support to significantly expand transmission capacity out of the basin and improve market connectivity for Canadian natural gas production,” said Russ Girling, TransCanada’s president and chief executive officer. “We continue to work diligently with industry to facilitate economic access for their natural gas to key export markets, including access to Eastern Canada and the U.S. Northeast through TransCanada’s Canadian Mainline and downstream systems.”
NGTL also executed contracts for incremental firm receipt service totalling 620 million cubic feet of natural gas per day beginning in April 2021. These contracts will connect new supply in the low-cost Montney, Deep Basin and Duvernay plays to the NGTL System and provide shippers access to various local and export markets.
“This program will provide much-needed transportation solutions for Western Canadian natural gas producers and unlock access to existing Canadian Mainline capacity,” added Girling. “The NGTL System is a strategic TransCanada asset and we are committed to providing shippers with timely and competitive options to connect growing basin supply to downstream markets throughout North America.”
The expansion program will include approximately 375 kilometres of large diameter pipeline, compression facilities, meter stations and other associated facilities.
It expects to file a project description with the National Energy Board by the second quarter of this year to start the review process.
Subject to regulatory approvals, construction is hoped to begin in 2019.
With files from The Canadian Press