TransCanada Corp. will expand its Nova Gas Transmission Ltd. (NGTL) System to connect existing and new supply to incremental intra-basin demand. The expansion consists of about 197 km (122 miles) of large-diameter pipeline, three compression units, meter stations, and associated infrastructure.
The company expects to file applications to build and operate the expansion with Canada’s National Energy Board second-quarter 2019. Pending regulatory approvals, construction will start as early as third-quarter 2020.
The project is underpinned by about 1.1 bcfd of new firm service contracts. Shippers have executed commercial agreements for 754 MMcfd of incremental firm delivery services starting in April 2022, supplying Alberta power generation, oil sand extraction, petrochemical, industrial, and utilities segments. Shippers also executed 377 MMcfd of firm receipt services from November 2021 connecting incremental Montney and Deep basin production to the system. The contracts have terms of 8 to 20 years.
TransCanada estimates cost of the expansion at $1.5 billion, with most of the capital investment expected to occur 2021-22.
