April 2018, Vol.245, No.4


TransCanada Expanding NGTL System Capacity

TransCanada will move forward with a $2.4 billion expansion of its NGTL System to connect incremental supply and expand basin export capacity by 1 Bcf/d of natural gas at the interconnection with its Canadian Mainline.

The company 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 Bcf/d of expansion capacity for firm service that will commence in November 2020 and April 2021. 

“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. 

TransCanada also executed contracts for incremental firm receipt service totaling 620 MMcf/d of natural gas per day 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 incremental receipt and export delivery contracts will drive a $2.4 billion expansion program that will include 233 miles (375 km) of large-diameter pipeline, compression facilities, meter stations and other associated facilities. TransCanada anticipates filing a project description with the National Energy Board (NEB) by the second quarter of 2018 to initiate the regulatory review. Construction will begin in 2019.

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