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TransCanada to spend C$2.4B on 1 Bcf/d expansion for Western Canadian producers

TransCanada Corp. on Feb. 15 committed to a C$2.4 billion expansion project on its NGTL natural gas pipeline system that would increase export capacity by 1 Bcf/d for producers in the Western Canadian Sedimentary Basin.

The expansion would provide the basin's producers with access to an interconnection at the company's Canadian Mainline system, and would involve the build-out of about 233 miles of large-diameter pipeline, compression facilities and meter stations, according to a Feb. 15 news release.

NGTL completed an oversubscribed open season for existing and export capacity at the Empress/McNeill export delivery point, with shippers executing binding agreements for 1.0 Bcf/d of expansion capacity. Firm service under the contracts would begin in November 2020 and April 2021, with average contract terms of 28.6 years.

In addition, NGTL executed contracts for firm receipt service of 620 MMcf/d starting April 2021, transporting gas supply from the Montney, Deep Basin and Duvernay plays via the NGTL system to local and export markets.

The expansion plan would raise NGTL's total near-term growth commitment to about C$7.2 billion. TransCanada intends to file applications with the National Energy Board by the second quarter and expects to begin construction in 2019.