TransCanada Moving on $140mn NGTL Expansion
Canadian pipeline TransCanada said June 18 it will move forward with a $140mn (US$106mn) expansion of its Nova Gas Transmission Limited (NGTL) system in Alberta to enhance the ability of producers to reach export markets.
The expansion decision follows on the heels of a successful open season in March for incremental firm export delivery service at the Empress/McNeill export delivery point in southeastern Alberta.
As a result of that open season, shippers have executed binding agreements averaging 22 years for 280mn ft3/day of incremental firm delivery service that will begin in November 2021. At the same time, NGTL also concurrently executed incremental intra-basin firm delivery service contracts with other shippers for a total of 75mn ft3/day that contribute to the need for the new facilities.
“The successful open season for incremental export capacity demonstrates the significant continued interest of parties in the Western Canadian Sedimentary Basin (WCSB) to secure access to high value downstream markets,” Tracy Robinson, TransCanada’s senior vice-president and general manager, Canadian gas pipelines, said in a statement. “TransCanada remains firmly committed to providing our customers timely and reliable access to these markets through appropriate facility expansions and competitive service offerings.”
This investment is a component of NGTL’s plan to invest $7.3bn in a multi-year infrastructure expansion program that will increase transportation capacity for western Canadian producers and provide downstream markets increased access to natural gas from the WCSB.