TransCanada to spend $2 billion on NOVA Gas expansion

CALGARY, A.B. — TransCanada Corp. announced on Wednesday that it will move forward with a $2 billion expansion of its NOVA Gas Transmission System.

The company says that the expansion program is a result of growing producer demand to connect production in the Montney, Duvernay and Deep Basin to the NOVA Gas system. According to TransCanada, number of shippers have recently signed over 2.6 billion cubic feet per day in new supply contracts.

“Between now and 2021, TransCanada is investing approximately $2 billion in new pipeline infrastructure to connect Western Canadian natural gas production to key markets within the basin and across North America,” said Karl Johannson, TransCanada’s executive vice-president and president, Canada and Mexico natural gas pipelines and energy. “This expansion adds to the current $5.1 billion near-term capital program for the NGTL System, further enhancing our ability to meet the needs of our customers for safe, reliable and competitive gas transmission infrastructure.”

TransCanada recently ended an expansion open season for incremental service at the Alberta/British Columbia export delivery point, which connects Canadian supply to markets in the Pacific Northwest, California and Nevada.

“The NGTL System remains a key component of TransCanada’s high-quality portfolio of energy infrastructure assets that continue to produce solid results across various market conditions,” said Johannson. “Our strategy is to maintain and optimize NGTL’s competitive position and to focus on growing our established network to connect growing volumes of Western Canadian Sedimentary Basin natural gas to key market areas.”

Applications for the various projects of the expansion will be filed with the National Energy Board starting in the fourth quarter of this year. Subject to regulatory approvals, construction is expected to start in early 2019, with initial projects expected to be in service towards the end of 2019, and final projects in service by mid-2021.