Government okays $1.3-billion TransCanada NGTL expansion

TransCanada Corp. reported that the Canadian government has given the go-ahead on the pipeline operator’s $1.3-billion NGTL System expansion project, which includes five pipeline sections totaling 230 km and the addition of two compression facilities (OGJ Online, Nov. 17, 2015).

The first facilities are expected to enter into service in second-quarter 2017, with the entire project expected to be completed by second-quarter 2018.

Russ Girling, TransCanada’s president and chief executive officer, said the expansion of the NGTL System is a key component of the company’s $25-billion near-term capital spending program.

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

Currently the NGTL System gathers 75% of natural gas production from the Western Canadian Sedimentary Basin. So far in 2016, NGTL's average transported volume is 11.3 billion bcfd compared with 2015’s average of 11 bcfd.

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