Calgary-based TransCanada Corp. announced April 2 that has completed the final section of its major pipeline expansion in Western Canada. The company placed its Northwest Mainline Loop-Boundary Lake pipeline into service, completing the final section of its 2017 expansion program on the NOVA Gas Transmission Ltd. (NGTL) System.
With the completion of winter construction activities, the 2017 NGTL Expansion Program represents a $1.7 billion (CAD) investment in Canadian natural gas infrastructure. The project connects low-cost, clean-burning natural gas from northwest Alberta and northeast British Columbia to the NGTL System.
The NGTL expansion added approximately 230 km of new pipeline and additional compression facilities and increased the NGTL System capacity by approximately 500 million cubic feet per day (MMcf/d). In addition, it generated an estimated $800 million in labor income during the construction phase and will add an estimated $1.2 billion in gross domestic product in Canada.
“We continue to focus on optimizing the competitiveness of the NGTL System and services and expanding our established transportation network to connect growing volumes of Western Canadian Sedimentary Basin natural gas to markets across North America,” said Tracy Robinson, TransCanada’s senior vice-president and general manager, Canadian Gas Pipelines. “Projects like the 2017 NGTL Expansion Program demonstrate our strong focus on future growth opportunities for producers and we are working with industry to address their needs for long-term, safe and reliable transportation service.”
The 2017 NGTL Expansion Program is part of TransCanada’s commitment of more than $7 billion in near-term growth capital to the NGTL System that will, subject to regulatory approvals, allow the company to increase its delivery capacity of clean-burning natural gas on the system by 2.5 billion cubic feet per day (Bcf/d) by 2021. Completion of the expansion follows consecutive, successful, over-subscribed open seasons to connect growing basin supply to downstream markets across North America, as well as a negotiated revenue requirement settlement that provides NGTL customers with cost certainty for 2018-2019.
The NGTL System is an extensive natural gas pipeline system in Western Canada that is comprised of approximately 24,320 km of pipeline and associated facilities.