Canada’s TC Energy has approved two new expansion projects totalling $1.3 billion (€1.2 billion) on its natural gas pipeline systems.
The 2023 NGTL Intra-Basin System Expansion will deliver natural gas from the Western Canadian Sedimentary Basin (WCSB) to markets within Alberta on the NOVA Gas Transmission system. The Alberta Xpress project will see the expansion of the ANR Pipeline to provide a path for Canadian production to access LNG export and other markets on the US Gulf Coast.
“Our natural gas pipeline systems require expansion as customers continue to contract for incremental pipeline capacity to meet growing demand,” said Russ Girling, TC Energy’s president and CEO. “These new investments within our existing system footprints supplement our ongoing $30 billion [€27.7 billion] secured capital programme and demonstrate the long-term need across North America and in global energy markets for clean-burning natural gas, as well as the value of our existing infrastructure as a platform for organic growth.”
The first expansion project is underpinned by around 309 million cubic feet per day of new firm service delivery contracts. Customers have signed agreements with 15-year terms, with service commencing in 2023, which will connect WCSB supply to market demand in Alberta’s power generation, oil sands, petrochemical and utility sectors.
The project will include approximately 119km of new pipeline in existing rights-of-way and 90MW of additional compression. Applications for approvals to construct and operate the new facilities are expected to be filed with the Canada Energy Regulator this year, with construction slated to begin in 2021.
The Alberta Xpress project is supported by approximately 160 million cubic feet of gas per day of new service contracts and will include compressor station modifications and additions within the existing ANR footprint, as well as use existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems.
According to TC Energy, applications for approvals to construct and operate the ANR facilities will be filed with the Federal Energy Regulatory Commission in 2020, with construction to begin as early as the third quarter of 2021.
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