TransCanada Corp. says it will move forward with a C$2 billion ($1.52 billion) expansion program on its NOVA Gas Transmission Ltd. (NGTL) System, based on new contracted customer demand for approximately 3 billion cubic feet per day (Bcf/d) of incremental firm receipt and delivery services.
The new pipeline infrastructure would connect Western Canadian natural gas production to key markets within the basin and across North America. The expansion adds to the current C$5.1 billion near-term capital program for the NGTL System.
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The expansion program results from growing producer demand to connect low-cost Montney, Duvernay, and Deep Basin production to the NGTL System and move it to intra-basin and export markets. TransCanada says that "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 says it also concluded a recent expansion open season for incremental service at the Alberta/British Columbia export delivery point. That point connects Canadian supply through downstream TransCanada pipelines to Pacific Northwest, California, and Nevada markets. The open season reportedly was over-subscribed, and all 381 MMcf/d (408 TJ/d) of available expansion service was awarded under long term contracts.
The expansion program will include numerous projects that will include 273 kilometres (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 projects will be filed with the National Energy Board starting in the fourth quarter of 2017. Subject to regulatory approvals, construction is expected to start in early 2019. Initial projects are expected to be in service in Q4 2019 and final projects in service by Q2 2021.
TransCanada operates a network of natural gas pipelines that cover more than 91,500 kilometres (56,900 miles), tapping into major gas supply basins in North America. TransCanada also provides gas storage and related services with 653 billion cubic feet of storage capacity. The company also owns or has interests in approximately 6,200 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of a liquids pipeline system that extends over 4,300 kilometres (2,700 miles).
To contact the author of this article, email david.wagman@ieeeglobalspec.com
