NOVA Gas signs on for $570 million expansion

NOVA Gas Transmission Ltd. has signed contracts for approximately 2.7 billion ft³/day of new firm natural gas transportation service, that will require a $570 million system expansion for 2018.

TransCanada – of which NOVA Gas is a subsidiary – announced that ‘significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand.’

“Our NGTL System is sitting on top of extensive natural gas supplies, making it well-positioned to unlock the resource and reliably and efficiently link it to growing markets,” said Russ Girling, TransCanada’s president and chief executive officer. “The system has been operating at capacity, and more capacity is needed in these key areas that support the growth of the prolific gas resource in the Western Sedimentary Basin.”

The 2018 expansion program will increase the overall investment on the NGTL System beyond the already announced $7.5 billion of projects.

The 2018 expansion includes:

• multiple projects that total 88 kilometres (55 miles) of 20- to 48-inch diameter pipeline,
• one new compressor,
• approximately 35 new and expanded meter stations

“The expansion of the NGTL System is an important part of TransCanada’s industry leading $48 billion capital growth plan that includes $23 billion of new natural gas pipelines,” added Girling.

Applications for various components of the 2018 expansion program will be filed with the National Energy Board between the second and fourth quarter of 2016.