Government of Canada approves Transcanada’s $1.3-B NGTL expansion

Photo courtesy of TransCanada.

The Government of Canada has approved TransCanada Corp.'s (TransCanada) $1.3 billion 2017 NGTL system expansion project, which will provide important additional capacity to meet the needs of natural gas shippers.

The expansion project includes five new pipeline sections totaling 230 km and the addition of two compression facilities. The first facilities are expected to be ready for service in the second quarter of 2017, with the entire project expected to be completed by the second quarter of 2018.

"TransCanada's natural gas system has played a key role transporting growing natural gas supplies from the Western Canadian Sedimentary Basin (WCSB) to premium markets across North America, providing significant benefits for our customers, consumers, communities and governments for more than 65 years," said Russ Girling, TransCanada's president and chief executive officer. "Expansion of the NGTL System is an important part of TransCanada's industry-leading $25-B near-term capital program."

The project will require the purchase of $1.2 B in Canadian goods and services, including approximately $800 MM in labor income during construction.

TransCanada has engaged in extensive consultation with Indigenous communities, working with 55 communities in the project area. TransCanada will continue to engage Indigenous communities and landowners throughout the life cycle of the project.

Today the NGTL System gathers approximately 75% of WCSB production. It provides shippers with significant options to transport WCSB natural gas to growing markets in North America. So far in 2016, NGTL's average transported volume is approximately 11.3Bcfd, compared to the 2015 average of 11 Bcfd.

• Most Read
• Most Commented