TransCanada announced on Wednesday that it will move forward with a $1.5 billion expansion of its NOVA Gas Transmission Ltd., or NGTL system. TransCanada photo.
NGTL expansion includes 197 km large diameter pipeline, compression units, meter stations, other facilities
On Wednesday, TransCanada Corporation announced it will go ahead with the $1.5 billion expansion of its NOVA Gas Transmission Ltd., or NGTL, system.
“The NGTL System continues to expand as parties require and contract for greater pipeline capacity to meet the growing demand for clean-burning natural gas from domestic and export markets,” said Russ Girling, TransCanada’s president and chief executive officer.
Girling added “this new investment brings the capacity expansion programs underway on the NGTL System to more than $9 billion”.
The expansion plan includes adding about 197 kilometres of large diameter pipe, three compression units, meter stations and other facilities. According to TransCanada, the expansion is underpinned by approximately 1.1 billion cubic feet per day (cf/d) of new firm service contracts.
TransCanada says it has signed agreements for 754 million cf/d of incremental firm delivery services that will begin in April, 2022. The pipeline will accommodate growing demand in the Alberta power generation, oil sands, petrochemical, industrial and utilities segments.
Shippers have also concurrently executed 377 million cf/d of firm receipt services beginning in November 2021 that will connect incremental Montney and Deep Basin supply to the system. TransCanada says these contracts have terms that range from eight to 20 years.
Applications for approvals to construct and operate the facilities are expected to be filed with the National Energy Board in the second quarter of 2019 and, pending receipt of regulatory approvals, construction will commence as early as the third quarter of 2020. The majority of the capital investment is expected to occur in 2021 and 2022.
Also on Wednesday, TransCanada reported a third-quarter profit of $928 million, up from a profit of $612 million in Q3, 2017. Revenue totalled $3.16 billion, down slightly from nearly $3.20 billion this time last year.
According to TransCanada, its comparable earnings for the third quarter were $1 per share, up from 70 cents per share in 2017.
Analysts had projected TransCanada to announce a profit of 78 cents per share, according to Thomson Reuters Eikon.
The project includes three main areas:
Grande Prairie West Area:
- Grande Prairie Mainline Loop No. 4 (Valhalla Section), approximately 38 km; and,
- Grande Prairie Mainline Loop No. 3 (Elmworth Section), approximately 47 km.
Grande Prairie South Area:
- Grande Prairie Mainline Loop No. 2 (Karr Section), approximately 57 km;
- Grande Prairie Mainline Loop No. 2 (Deep Valley Section), approximately 68 km; and,
- Grande Prairie Mainline Loop No. 2 (McLeod River Connection Section), approximately 15 km.
Edson South Area:
- Edson Mainline Loop No. 4 (Rob Section), approximately 42 km;
- Edson Mainline Loop No. 4 (Dismal Creek Section), approximate4ly 33 km;
- Edson Mainline Loop 4 (Brewer Section), approximately 50 km;
- Three compressor station unit additions at Nordegg, AB, Didsbury, AB and Beiseker, AB; and,
- January Creek Control Valve and associated pipeline tie-ins.