TransCanada announced that it will move ahead with $2bn expansion program on its NOVA Gas Transmission (NGTL) system due to growing customer demand.

The company said that the decision is based on new contracted customer demand for nearly 3 billion cubic feet per day (Bcf/d) of incremental firm receipt and delivery services.

TransCanada's Canada and Mexico natural gas pipelines and energy executive vice-president and president said: "Between now and 2021, TransCanada is investing approximately $2bn in new pipeline infrastructure to connect Western Canadian natural gas production to key markets within the basin and across North America.”

 Growing producer demand to connect low-cost Montney, Duvernay and Deep Basin production to the NGTL System is also the reason behind the expansion plan.

The expansion program will consists of several projects that will in aggregate, include 273 kilometres (171 miles) of NPS 16 to NPS 48 pipeline, 150 MW of compression at five compressor stations, new meter stations and other associated facilities.

TransCanada will file applications for the various projects with the National Energy Board starting in the fourth quarter of 2017.

Construction on the expansion of the NGTL system is expected to start in early 2019, subject to regulatory approvals.

While initial projects are expected to enter service in Q4 2019, final projects to be in service by Q2 2021.

Recently, the company has also finished expansion of open season for incremental service at the Alberta/British Columbia export delivery point.

Johannson said: "The NGTL System remains a key component of TransCanada's high-quality portfolio of energy infrastructure assets that continue to produce solid results across various market conditions.”

"Our strategy is to maintain and optimize NGTL's competitive position and to focus on growing our established network to connect growing volumes of Western Canadian Sedimentary Basin natural gas to key market areas."

Image: The expansion program will consists of several projects. Photo: courtesy of bejim/