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TransCanada to expand NGTL system capacity

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TransCanada Corp. has announced that it will proceed with a new $2 billion expansion programme on its NOVA Gas Transmission Ltd (NGTL) system, based on a new contracted customer demand for approximately 3 billion ft3/d of incremental firm receipt and delivery services.

Karl Johannson, TransCanada's executive vice-president and president, Canada and Mexico natural gas pipelines and energy, said: “Between now and 2021, TransCanada is investing approximately $2 billion in new pipeline infrastructure to connect Western Canadian natural gas production to key markets within the basin and across North America.

"This expansion adds to the current $5.1 billion near-term capital program for the NGTL System, further enhancing our ability to meet the needs of our customers for safe, reliable and competitive gas transmission infrastructure."

The expansion programme is the result of growing producer demand to connect low-cost Montney, Duvernay and Deep Basin production to the NGTL System and move it to premium intra-basin and export markets. A number of shippers have recently signed more than 2.6 billion ft3/d in total new firm supply contracts at various existing and proposed new receipt locations across the system.

The company claims that it has also successfully concluded a recent expansion open season for incremental service at the Alberta/British Columbia (B.C.) export delivery point, which connects Canadian supply through downstream TransCanada pipelines to Pacific Northwest, Nevada and California markets. The open season was over-subscribed, and all 381 million ft3/d of the available expansion service was awarded under long-term contracts.

Johannson added: “The NGTL System remains a key component of TransCanada's high-quality portfolio of energy infrastructure assets that continue to produce solid results across various market conditions.

"Our strategy is to maintain and optimise NGTL's competitive position and to focus on growing our established network to connect growing volumes of Western Canadian Sedimentary Basin natural gas to key market areas."

The expansion programme will consist of a number of projects. Combined, these will include 273 km of NPS 16 to NPS 48 pipeline, 150 MW of compression at five compressor stations, new meter stations and other associated facilities. TransCanada claims that applications for the various projects will be filed with the National Energy Board commencing 4Q17. Subject to regulatory approvals, construction work is expected to commence in early 2019, with initial projects expected to start service in 4Q19, and final projects by 2Q21.

TransCanada claims that it will engage communities, landowners and indigenous groups near the project areas in Alberta and B.C., focusing on working with local contractors and businesses, and providing opportunities for community and indigenous participation through community investment, scholarships, and programmes such as the Aboriginal Construction Participation Programme.

Johannson said: “As part of our engagement process, specific projects will be announced and details communicated to stakeholders as each project moves forward.”

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