$7 billion investment in NGTL System will expand capacity to 2.5 Bcf/d by 2021
TransCanada Corporation (TSX:TRP) (NYSE:TRP) says announced its Northwest Mainline Loop-Boundary Lake pipeline has been placed into service, completing the final section of its 2017 Expansion Program on the NOVA Gas Transmission Ltd. (NGTL) System.
The 2017 Expansion Program added approximately 230 kms of new pipeline and additional compression facilities, while increasing the NGTL System capacity by approximately 500 million cubic feet per day.
“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 VP and general manager, Canadian Gas Pipelines, in a press release.
The 2017 Expansion Program represents a $1.7 billion investment in Canadian natural gas infrastructure and connects natural gas from northwest Alberta and northeast British Columbia to the NGTL System.
The company says the project generated an estimated $800 million in labour income during the construction phase and will add an estimated $1.2 billion in gross domestic product in Canada.
“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,” said Robinson.
The 2017 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 natural gas on the system by 2.5 billion cubic feet per day by 2021.
Completion of the 2017 Expansion Program 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 a natural gas pipeline system in Western Canada comprised of approximately 24,320 kms of pipeline and associated facilities.