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    Canada’s TC Energy Sanctions Expansions

Summary

Projects will support 469mn ft³/day of new capacity in Canada, US

by: Dale Lunan

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Canada’s TC Energy Sanctions Expansions

Canadian gas pipeline developer TC Energy said February 13 it has sanctioned $1.3bn (US$980mn) worth of expansion projects aimed at enhancing access to domestic and export markets.

In Alberta, the $900mn NGTL Intra-Basin Expansion will deliver Western Canadian Sedimentary Basin (WCSB) gas to power generation, oil sands, petrochemical and utility customers served by the Nova Gas Transmission Limited (NGTL) system, while the US$300mn (C$398mn) Alberta XPress project will see capacity expanded on the ANR Pipeline to provide easier access to growing 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,” TC Energy CEO Russ Girling said. “These new investments within our existing system footprints supplement our ongoing $30bn secured capital program 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 NGTL expansion is underpinned by about 309mn ft3/day of new firm service delivery contracts starting in 2023 and involves about 119 km (74 miles) of new pipeline in existing rights-of-way and 90 MW of additional compression. Applications are expected to be filed with the Canada Energy Regulator later this year, and pending approval, construction could begin as early as 4Q 2021.

The Alberta XPress project, meanwhile, is underpinned by about 160mn ft3/day of new firm service contracts starting in 2022 and will involve compressor station modifications and additions within the existing ANR footprint and utilisation of existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems. Applications will be filed with the US Federal Energy Regulatory Commission later this year, and pending approvals, construction could begin as early as 3Q 2021.