TransCanada PipeLines Ltd., Calgary, has filed an application to the National Energy Board for a $1.1 billion (Canadian) system expansion.
It claims the so-called Nexus project will provide customers a more "integrated, multiple-market solution" to transportation needs.
"This application provides a foundation for the downstream projects that TransCanada and others have been announcing," said Pres. and Chief Executive Officer George Watson. "It's the first phase of a multi-year expansion plan that confirms and enhances the overall ability of our Canadian mainline to serve multiple markets."
What's involved
Following precedent agreements recently returned by TransCanada's customers, plans call for about 1.25 bcfd of new capacity during the next 2 years, including about 865 MMcfd in 1998.
This is beyond the 300 MMcfd of new capacity TransCanada is adding to be in service by Nov. 1, 1998, as a result of expansion programs already approved and under way.
The newest expansion includes 371 km of pipeline, 11 new compressors, and four metering stations. The additions will enable TransCanada to meet customer requests by November 1998 for new short and long-haul, firm transportation totaling about 456 MMcfd.
For the 1999 leg of the expansion, TransCanada will file another application to cover remaining 1998 customer commitments as well as 1999 customer commitments already received and other requests, as the full scope of downstream interconnecting projects takes shape.
Advantages
Nexus will be capable of operating at higher-than-traditional pressure, and will serve all Canadian markets east of Alberta, as well as export markets in the U.S. Midwest and Northeast. The pipeline is designed for "economic expandability on a phased-in basis," TransCanada said, adding that it will feed both existing and proposed pipelines in both Canada and the U.S.
"Our ability to phase-in facilities allows us to deliver capacity to meet the markets faster and more cost effectively than anyone else," said Bob Reid, senior vice-president for TransCanada's Canadian main line.
TransCanada's 14,000-km main line shipped an average 6.7 bcfd in 1996, more than 10% of North America's total market requirements, the company said.
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