Canadian Government Approves $1.3 Billion NGTL System Expansion Project

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The Government of Canada has approved TransCanada’s $1.3 billion 2017 NGTL System Expansion Project, which will provide important additional capacity to meet the needs of natural gas shippers.

The expansion project includes five new pipeline sections totaling 230 kilometres and the addition of two compression facilities. The first facilities are expected to be ready for service in the second quarter of 2017, with the entire project expected to be completed by the second quarter of 2018.

“TransCanada’s natural gas system has played a key role transporting growing natural gas supplies from the Western Canadian Sedimentary Basin (WCSB) to premium markets across North America, providing significant benefits for our customers, consumers, communities and governments for more than 65 years,” said Russ Girling, TransCanada’s president and chief executive officer. “Expansion of the NGTL System is an important part of TransCanada’s industry-leading $25-billion near-term capital program.”

The project will require the purchase of $1.2 billion in Canadian goods and services, including approximately $800 million in labour income during construction.

The NGTL System gathers approximately 75 per cent of WCSB production. It provides shippers with significant options to transport WCSB natural gas to growing markets in North America. So far in 2016, NGTL’s average transported volume is approximately 11.3 billion cubic feet per day (Bcf/d), compared to the 2015 average of 11 Bcf/d.

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