Government of Canada approves $1.3 Billion NGTL system expansion project

NGTL map

NGTL requires purchase of $1.2 billion in Canadian goods, services, including $800 million in labour income

CALGARY, ALBERTA – TransCanada Corporation announced the Government of Canada has approved the company’s $1.3 billion 2017 NGTL System Expansion Project, which will provide important additional capacity to meet the needs of natural gas shippers, according to a press release.

The expansion project includes five new pipeline sections totaling 230 kilometres in Alberta and the addition of two compression facilities in northern Alberta as part of its existing NGTL System.

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The first facilities are expected to be ready for service in the second quarter of 2017, with the entire project expected to be completed by the second quarter of 2018.

Approximately 90 per cent of the project would parallel existing linear disturbances, such as pipelines and roads. The new facilities would consist of:

Northwest Mainline Loop – Boundary Lake Section (approx. 91 km)
Northwest Mainline Loop – Bear Canyon Section (approx. 27 km)
Grande Prairie Mainline Loop No. 2 – McLeod River Section (approx. 36 km)
Liege Lateral Loop No. 2 – Pelican Lake Section (approx. 56 km)
Kettle River Lateral Loop – Christina River Section (approx. 20 km)
Alces River Compressor Station Unit Addition
Otter lake Compressor Station Unit Addition

“TransCanada’s natural gas system has played a key role transporting growing natural gas supplies from the Western Canadian Sedimentary Basin (WCSB) to premium markets across North America, providing significant benefits for our customers, consumers, communities and governments for more than 65 years,” said Russ Girling, TransCanada’s president and chief executive officer.

The project will require the purchase of $1.2 billion in Canadian goods and services, including approximately $800 million in labour income during construction.

“Expansion of the NGTL System is an important part of TransCanada’s industry-leading $25-billion near-term capital program,” said Girling.

TransCanada has engaged in extensive consultation with Indigenous communities, working with 55 communities in the project area, according to the press release.

Today the NGTL System gathers approximately 75 per cent of Western Canadian Sedimentary Basin production.

It provides shippers with significant options to transport natural gas to growing markets in North America. So far in 2016, NGTL’s average transported volume is approximately 11.3 billion cubic feet per day, compared to the 2015 average of 11 Bcf/d.