TransCanada Announces $1.5 Billion NGTL System Expansion to Connect WCSB Supply to Incremental Market Demand
October 31 2018 - 5:35PM
News Release – TransCanada Corporation (TSX, NYSE: TRP)
(TransCanada) announced today that it will move forward with a $1.5
billion expansion of its NOVA Gas Transmission Ltd. (NGTL) System
to connect existing and new supply to incremental intra-basin
market demand.
“The NGTL System continues to expand as parties require and
contract for greater pipeline capacity to meet the growing demand
for clean-burning natural gas from domestic and export markets,”
said Russ Girling, TransCanada’s president and chief executive
officer. “This new investment brings the capacity expansion
programs underway on the NGTL System to more than $9 billion.”
This expansion program is underpinned by approximately 1.1
billion cubic feet per day of new firm service contracts. Shippers
have executed commercial agreements for 754 million cubic feet per
day (MMcf/d) of incremental firm delivery services commencing in
April 2022 that will connect growing Alberta market demand in the
power generation, oil sands, petrochemical, industrial and
utilities segments. Shippers have also concurrently executed 377
MMcf/d of firm receipt services commencing in November 2021 that
will connect incremental Montney and Deep Basin supply to the
system. The contracts have terms that range from eight to 20
years.
The program consists of approximately 197 kilometres (122 miles)
of large diameter pipeline, three compression units, meter stations
and associated facilities. Applications for approvals to construct
and operate the facilities are expected to be filed with the
National Energy Board in the second quarter of 2019 and, pending
receipt of regulatory approvals, construction will commence as
early as the third quarter of 2020, with the majority of the
capital investment expected to occur in 2021 and 2022.
With more than 65 years' experience, TransCanada is a leader in
the responsible development and reliable operation of
North American energy infrastructure including natural gas and
liquids pipelines, power generation and gas storage facilities.
TransCanada operates one of the largest natural gas transmission
networks that extends more than 91,900 kilometres (57,100 miles),
tapping into virtually all major gas supply basins in North
America. TransCanada is a leading provider of gas storage and
related services with 653 billion cubic feet of storage capacity. A
large independent power producer, TransCanada currently owns or has
interests in approximately 5,700 megawatts of power generation in
Canada and the United States. TransCanada is also the developer and
operator of one of North America’s leading liquids pipeline systems
that extends approximately 4,900 kilometres (3,000 miles),
connecting growing continental oil supplies to key markets and
refineries. TransCanada’s common shares trade on the Toronto and
New York stock exchanges under the symbol TRP.
Visit TransCanada.com to learn more, or connect with
us on social media.
FORWARD-LOOKING INFORMATIONThis publication
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries'
future plans and financial outlook. All forward-looking statements
reflect TransCanada's beliefs and assumptions based on information
available at the time the statements were made and as such are not
guarantees of future performance. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed in this news release, and not
to use future-oriented information or financial outlooks for
anything other than their intended purpose. TransCanada undertakes
no obligation to update or revise any forward-looking information
except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to the
Quarterly Report to Shareholders dated August 1, 2018 and 2017
Annual Report filed under TransCanada's profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange Commission
at www.sec.gov.
Media Inquiries: Terry Cunha 800.608.7859
TransCanada Investor & Analyst Inquiries:
David Moneta / Duane Alexander 403.920.7911 or 800.361.6522
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