TransCanada Invests C$2 Bln To Expand NGTL System Capacity

(RTTNews) - TransCanada Corp. (TRP, TRP.TO) said that it will move forward with a new C$2 billion expansion program on its NOVA Gas Transmission Ltd. or NGTL System, based on new contracted customer demand for about 3 billion cubic feet per day or Bcf/d of incremental firm receipt and delivery services.

The company noted that the expansion program results from growing producer demand to connect low-cost Montney, Duvernay and Deep Basin production to the NGTL System and move it to premium intra-basin and export markets. Numerous shippers have recently signed over 2.6 Bcf/d in total new firm supply contracts at multiple existing and proposed new receipt locations across the System.

The expansion program will be comprised of numerous projects that will in aggregate, include 273 kilometres of NPS 16 to NPS 48 pipeline, 150 MW of compression at five compressor stations, new meter stations and other associated facilities. Applications for the various projects will be filed with the National Energy Board starting in the fourth quarter of 2017.

Construction is expected to start in early 2019, with initial projects expected to be in service in the fourth-quarter of 2019 and final projects in service by the second-quarter 2021.