Canadian Government Approves $1.3 Billion NGTL System Expansion

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TransCanada Corp. received the go-ahead to expand its natural gas pipeline infrastructure in Western Canada. The company announced Oct. 31 that the Canadian government has approved its $1.3 billion 2017 NGTL System Expansion Project.

The expansion project will add capacity to meet the needs of natural gas shippers in the region. The project includes five new pipeline sections totaling 230 km and two new compression facilities. The first facilities are expected to be ready for service in the second quarter of 2017. The entire project is expected to be completed by the second quarter of 2018.

“TransCanada’s natural gas system has played a key role transporting growing natural gas supplies from the Western Canadian Sedimentary Basin (WCSB) to premium markets across North America, providing significant benefits for our customers, consumers, communities and governments for more than 65 years,” said Russ Girling, TransCanada’s president and CEO. “Expansion of the NGTL System is an important part of TransCanada’s industry-leading $25 billion near-term capital program.”

The project will require the purchase of $1.2 billion in Canadian goods and services, including approximately $800 million in labor income during construction.

TransCanada has engaged in extensive consultation with Indigenous communities, working with 55 communities in the project area. TransCanada will continue to engage Indigenous communities and landowners throughout the life cycle of the project.

Today the NGTL System gathers approximately 75 percent of WCSB production. It provides shippers with significant options to transport WCSB natural gas to growing markets in North America. So far in 2016, NGTL’s average transported volume is approximately 11.3 billion cubic feet per day (Bcf/d), compared to the 2015 average of 11 Bcf/d.

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