TC Energy to Proceed with New Expansion Projects
TC Energy (formerly TransCanada) said November 1 it would proceed with its West Path Delivery Program, a combined C$1.2bn (US$912mn) expansion of its Nova Gas Transmission Limited (NGTL) and Foothills systems that will connect with the US$335mn (C$440mn) GTN XPress Project (see below) to enhance market access to the US Pacific Northwest.
“The West Path Delivery Program, along with the GTN XPress Project, further enhances connections of the Western Canadian Sedimentary Basin (WCSB) to high-value downstream markets,” TC Energy CEO Russ Girling said. “This $1.2bn program brings our sanctioned expansions of NGTL and Foothills infrastructure to $10bn, demonstrating our strong commitment to the long-term viability of the WCSB.”
West Path is underpinned by about 258mn ft3/day of new firm service contracts with terms that exceed 30 years beginning between 4Q 2022 and 4Q 2023. The project includes about 119 km of pipe and associated facilities, TC Energy said.
Regulatory applications for West Path will be filed in 2020, and pending receipt of regulatory approvals and permits, construction could begin as early as 4Q 2021.
GTN Xpress, announced November 1 by Houston-based TC PipeLines (owned 26.8% by TC Energy), will increase the reliability of existing transportation service on its wholly-owned Gas Transmission Northwest (GTN) interstate pipeline system and add about 250mn ft3/day of additional firm transportation service. The GTN system extends from Kingsgate, Idaho, where it connects with TC Energy’s Foothills system, to Malin, Oregon, where it connects with other interstate pipeline systems serving gas markets throughout the western US.
The reliability improvements entail horsepower replacement at existing compressor stations along the GTN right-of-way which are expected to be in service by the end of 2021, pending receipt of regulatory approvals. The incremental firm capacity, TC PipeLines said, will be phased into service through November 2023.