TransCanada has decided to proceed with the C$2.4bn ($1.9bn) expansion of its NOVA Gas Transmission (NGTL) system in Alberta, Canada to help increase market access for suppliers in Western Canadian Sedimentary Basin (WCSB).
TransCanada’s wholly-owned subsidiary NGTL will be responsible for the expansion of the pipeline system. Construction on the project is expected to commence in 2019.
The project is aimed at expanding the capacity of the NGTL system by constructing five pipeline sections to meet additional needs of natural gas shippers. It also involves the construction of compression facilities, meter stations and other associated facilities.
Earlier, TransCanada’s NGTL has signed binding agreements with shippers for incremental firm receipt service, effective from April 2021.
The contracts involves shipping of 620 million cubic feet of natural gas per day in total which will be sourced from the Montney, Deep Basin and Duvernay plays and supplied through the NGTL System, the company said.
TransCanada president and CEO Russ Girling said: “This program will provide much-needed transportation solutions for Western Canadian natural gas producers and unlock access to existing Canadian Mainline capacity.
“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.”
Following an open season for existing and export capacity at the Empress/McNeill Export Delivery Point, NGTL has executed binding agreements with shippers for 1.0 Bcf/d of expansion capacity for firm service, which will begin in November 2020 and April 2021.
Girling added: “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.
“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 US Northeast through TransCanada’s Canadian Mainline and downstream systems.”
NGTL plans to file a project description with the National Energy Board by the second quarter of 2018. Regulatory review process would then be initiated for the expansion project, subject to regulatory approvals.
Image: The NGTL expansion project is expected to help market access to Western Canadian Sedimentary Basin (WCSB). Photo: courtesy of supakitmod/FreeDigitalPhotos.net.