TC Energy has approved two new expansion projects totalling $1.3 billion on its wholly owned natural gas pipeline systems.
The $0.9 billion 2023 NGTL Intra-Basin System expansion will deliver natural gas from the Western Canadian Sedimentary Basin to markets within Alberta on the NOVA Gas Transmission System, while the $0.3 billion Alberta Xpress project will see the expansion of the ANR Pipeline to provide a seamless path for Canadian production to access growing LNG export and other markets along the US Gulf Coast.
Russ Girling, TC Energy's president and CEO, says: 'Our natural gas pipeline systems require expansion as customers continue to contract for incremental pipeline capacity to meet growing demand.
'These new investments within our existing system footprints supplement our ongoing $30 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 2023 NGTL Intra-Basin System expansion is underpinned by 309 million MMcf/d of new firm service delivery contracts. Customers have executed agreements with 15-year terms, with service commencing in 2023, that will connect WCSB supply to growing Alberta market demand in the power generation, oil sands, petrochemical and utility sectors. The 2023 NGTL Intra-Basin System expansion will include 119km of new pipeline in existing rights-of-way and 90 MW of additional compression. Applications for approvals to construct and operate the facilities are expected to be filed with the Canada Energy Regulator in 2020 and construction will commence as early as fourth quarter 2021.
The Alberta XPress project on ANR is underpinned by 160 MMcf/d of new firm service contracts and will include compressor station modifications and additions within the existing ANR footprint, as well as utlise existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems. Construction is due to start as early as the third quarter of 2021.