TC Energy Corp. has approved two new expansion projects on its natural gas pipeline systems. The 2023 NGTL Intra-Basin System Expansion will deliver natural gas from Western Canadian Sedimentary basin (WCSB) to markets within Alberta on the Nova Gas Transmission Ltd. (NGTL) System. The Alberta XPress project will expand capacity on the ANR Pipeline (ANR) to provide increased access to LNG export and other markets along the US Gulf Coast.
The 2023 NGTL Intra-Basin System Expansion is underpinned by about 309 MMcfd of new firm service delivery contracts. Customers have executed 15-year term agreements, with service commencing in 2023 to Alberta’s power generation, oil sands, petrochemical, and utility sectors. The 2023 NGTL Intra-Basin System Expansion will include roughly 119 km (74 miles) of new pipeline in existing rights-of-way and 90 Mw of additional compression.
TC Energy expects to file applications to build and operate the expansion with the Canada Energy Regulator in 2020 and, pending receipt of regulatory approvals, to begin constructions as early as fourth-quarter 2021.
The Alberta XPress project on ANR is underpinned by about 160 MMcfd of new firm service contracts and will include compressor station modifications and additions within the existing ANR footprint. Alberta Xpress will also use existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems. Customers have negotiated agreements with weighted average terms of 19 years and service starting in 2022.
TC Energy will file applications for approvals to build and operate the ANR project with the US Federal Energy Regulatory Commission (FERC) in 2020. Pending receipt of FERC approvals, construction will start as early as third-quarter 2021.
The two projects will cost CAN$1.3 billion, $900 million for the 2023 NGTL Intra-Basin System Expansion and US$300 million for Alberta XPress.