2023 NGTL Intra-Basin System Expansion and Alberta XPress project and approved by TC Energy
TC Energy has approved the 2023 NGTL Intra-Basin System Expansion and the Alberta XPress project on its 100% owned natural gas pipeline systems with a combined investment of $1.3 billion.
The 2023 NGTL Intra-Basin System Expansion is being taken up with an investment of $900 million for supplying natural gas produced in the Western Canadian Sedimentary Basin (WCSB) to markets within Alberta, Canada on the NOVA Gas Transmission pipeline. The natural gas delivered by the pipeline expansion project will address the demand of the power generation, oil sands, petrochemical and utility sectors in Alberta
The Alberta XPress project, on the other hand, which involves an investment of $300 million, will see the ANR Pipeline expanded to enable a seamless route for Canadian production to access the emerging LNG export and other markets along the US Gulf Coast.
Russ Girling – TC Energy President and CEO said: “Our natural gas pipeline systems require expansion as customers continue to contract for incremental pipeline capacity to meet growing demand.
“These new investments within our existing system footprints supplement our ongoing $30 billion 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.”
TC Energy approves 2023 NGTL Intra-Basin System Expansion and Alberta XPress project. Photo courtesy of TransCanada PipeLines Limited, an affiliate of TC Energy Corporation.
2023 NGTL Intra-Basin System Expansion
The 2023 NGTL Intra-Basin System Expansion has the backing of nearly 309 million cubic feet per day (MMcf/d) of new firm service delivery contracts. Customers have signed agreements with 15-year terms, with service to begin in 2023.
As part of the 2023 NGTL Intra-Basin System Expansion project, TC Energy will lay out nearly 119 km of new pipeline in existing rights-of-way along with 90MW of additional compression.
TC Energy said that applications for approvals to build and operate the facilities are likely to be filed with the Canada Energy Regulator this year, and subject to regulatory approvals, construction will begin as early as Q4 2021.
Alberta XPress project
The Alberta XPress project on the ANR Pipeline is backed by nearly 160 MMcf/d of new firm service contracts. It will see modifications and additions of compressor stations within the existing ANR Pipeline presence, apart from using the existing capacity on the Great Lakes Gas Transmission and Canadian Mainline systems.
TC Energy said that customers have negotiated agreements, which include preceding customary conditions, with weighted average terms of 19 years and service beginning in 2022.
According to the Canadian energy company, applications for approvals to build and operate the ANR facilities will be filed with the US Federal Energy Regulatory Commission (FERC) this year. Subject to FERC approvals, construction will begin as early as Q3 2021.