TransCanada’s NGTL receives approval for expansion

OREANDA-NEWS. November 01, 2016. Canada has approved TransCanada's application to build an expansion to the NOVA Gas Transmission (NGTL) system, which is expected to be in service during the second quarter of 2018.

The C\\$1.3bn (\\$1bn) project will increase NGTL system capacity by 443mn cf/d (12.5mn m?/d), TransCanada said.

The project includes five new pipeline loops totaling 143 miles (230 km) and the addition of two compression facilities.

TransCanada in November 2015 announced that it has signed 2.7 Bcf/d of new firm natural gas contracts on the NGTL system.

The 15,251-mile NGTL system gathers 75pc of the production from the Western Canadian Sedimentary basin (WCSB), moving growing production from the Duvernay, Montney, Horn River, Cordova and Liard basins. It delivers gas to major markets in Alberta and British Columbia and in the US.

Year-to-date average volume on NGTL was 11.3 Bcf/d, up from 11 Bcf/d in 2015, according to TransCanada.

The NGTL expansion is an important part of TransCanada's C\\$48bn capital growth plan including C\\$23bn in new pipeline projects, TransCanada has said.

Canadian regulator the National Energy Board (NEB) in June recommended government approval of the expansion.

NGTL has forecasted gas supply from WCSB is to grow from 14.2 Bcf/d to 19 Bcf/d by 2025, while supply in the NGTL system should grow by 43pc to 15 Bcf/d.