TWO CANADIAN GAS EXPORT PROJECTS APPROVED

Two Canadian gas pipeline projects aimed at export markets have received regulatory approvals. TransCanada PipeLines Ltd., Calgary, got the green light from the National Energy Board for a $357 million expansion of its system in Saskatchewan, Manitoba, and Ontario, Union Gas Ltd. plans some related expansion in southern Ontario. Alberta Natural Gas Ltd. (ANG), Calgary, a unit of Pacific Gas Transmission Co., San Francisco, received NEB approval for an $82 million expansion of its system in
June 1, 1992
2 min read

Two Canadian gas pipeline projects aimed at export markets have received regulatory approvals.

TransCanada PipeLines Ltd., Calgary, got the green light from the National Energy Board for a $357 million expansion of its system in Saskatchewan, Manitoba, and Ontario, Union Gas Ltd. plans some related expansion in southern Ontario.

Alberta Natural Gas Ltd. (ANG), Calgary, a unit of Pacific Gas Transmission Co., San Francisco, received NEB approval for an $82 million expansion of its system in British Columbia to serve @ $1.6 billion pipeline expansion to California by parent PGT.

The TransCanada approval covers 173 miles of loops. The project will add 116 MMcfd in capacity to the system for the 1992-93 contract year that begins Nov. 1. Sixty-nine percent of the added capacity is dedicated to meet export sales in the U.S. and 31% for markets in Central Canada.

The latest construction approved is in addition to a $2.4 billion expansion the company is completing to link up with the Iroquois Gas Transmission System serving the U.S. Northeast. Export volumes are already moving through the system.

TransCanada also recently applied for an additional $499 million expansion project for 1993. That is under consideration by NEB.

ANG plans to begin construction early in 1993 to meet a Nov. 1, 1993, deadline for start of deliveries through the expanded Alberta-California gas link by its parent company.

Foothills Pipe Lines Ltd and Nova Corp., both of Calgary, also plan a total of more than $400 million in system expansions related to the PGT California project, currently under construction. The Foothills and Nova projects are subject to regulatory approvals.

Meanwhile, the Altamont group, which plans a rival delivery system to California via the Kern River Transmission system connecting at Opal, Wyo., is going ahead with its plans.

Altamont, led by Tenneco Inc., is conducting geotechnical studies for a Missouri River crossing and will begin boring under the river this fall.

Altamont said the NEB approval for the ANG expansion does not affect its plans.

It noted the rival ANG-PGT project must still receive a number of approvals, including provincial and federal gas export permits.

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