TransCanada announces $2.4 billion NGTL expansion to increase market access for Western Canada gas

Image: TransCanada

TransCanada Corporation announced today it will move forward with a $2.4 billion expansion of its NGTL System.

The expansion will connect incremental supply and expand basin export capacity by one bcf/d of natural gas at the interconnection with its Canadian Mainline.

NGTL recently completed an open season for existing and export capacity at the Empress/McNeill Export Delivery Point that was oversubscribed.

Shippers have executed binding agreements for 1.0 bcf/d of expansion capacity for firm service that will begin in November 2020 and April 2021. The average of the contract terms awarded for the expansion capacity is 28.6 years.

“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,” said Russ Girling, TransCanada’s president and chief executive officer.

“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 U.S. Northeast through TransCanada’s Canadian Mainline and downstream systems.”

NGTL also executed contracts for incremental firm receipt service totalling 620 mmcf/d of natural gas beginning in April 2021. These contracts will connect new supply in the low-cost Montney, Deep Basin and Duvernay plays to the NGTL System and provide shippers access to various local and export markets.

The expansion program that will include approximately 375 kilometres of large diameter pipeline, compression facilities, meter stations and other associated facilities.

NGTL anticipates filing a project description with the National Energy Board by the second quarter of 2018 to initiate the regulatory review process.

Subject to regulatory approvals, it expects construction will begin in 2019.