TransCanada Corporation announced Monday that its wholly-owned subsidiary, NOVA Gas Transmission Ltd. (NGTL), has signed contracts for approximately 2.7 billion cubic feet per day (Bcf/d) of new firm natural gas transportation service that will require a $570 million system expansion for 2018.
Significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand.
The 2018 expansion program will increase the overall investment on the NGTL System beyond the already announced $7.5 billion of projects. Approximately $2.8 billion of these projects have received regulatory approval, with $800 million under construction, and an additional $1.7 billion of facilities are under regulatory review.
The 2018 expansion program will increase the overall investment on the NGTL System beyond the already announced $7.5 billion of projects. Approximately $2.8 billion of these projects have received regulatory approval, with $800 million under construction, and an additional $1.7 billion of facilities are under regulatory review.
The 2018 expansion includes multiple projects that total 88 kilometers (55 miles) of 20- to 48-inch diameter pipeline, one new compressor, approximately 35 new and expanded meter stations and other associated facilities. Applications to construct and operate the various components of the 2018 expansion program will be filed with the National Energy Board between the second quarter of 2016 and the fourth quarter of 2016. Subject to regulatory approvals, construction is expected to start in 2017, with all facilities expected to be in service in 2018.