On Monday, TransCanada announced it will proceed with a $140 million expansion of its NOVA Gas Transmission Ltd. (NGTL) system which boosts transportation capacity for Western Canadian producers. TransCanada photo.
NOVA Gas Transmission Ltd will provide downstream markets more access to natural gas
TransCanada announced on Monday that it will proceed with the proposed $140 million expansion of the NOVA Gas Transmission Ltd. (NGTL) system.
The move comes after the successful completion last March of an expansion capacity open season for incremental firm export delivery service at the Empress/McNeill Export Delivery Point.
Shippers executed binding agreements for 280 million cubic feet per day (MMcf/d) of incremental firm delivery service that will begin in November 2021.
The average term of the contracts awarded for the expansion capacity is 22 years. NGTL also concurrently executed incremental intra-basin firm delivery service contracts with other shippers for an aggregate volume of 75 MMcf/d that contribute to the need for the new facilities.
“The successful open season for incremental export capacity demonstrates the significant continued interest of parties in the Western Canadian Sedimentary Basin to secure access to high value downstream markets,” said Tracy Robinson, TransCanada’s senior vice-president and general manager, Canadian Gas Pipelines.
According to TransCanada, the new investment is a component of NGTL’s $7.3 billion multi-year infrastructure expansion program. The project will increase transportation capacity for Western Canadian producers and offer downstream markets more access to natural gas.