The estimated capital cost of the expansion is C$983 million. The North Central Corridor pipeline project is an expansion of the integrated Alberta System. It will provide capacity needed to address increasing gas supply in northwest Alberta, declining gas supply in northeast Alberta, growing intra-Alberta markets resulting largely from increased oil sands development, and reduced delivery capability to interconnecting pipelines at the Alberta-Saskatchewan border.
The expansion will allow Nova Gas to meet increased customer requirements for the 2009 to 2010 gas year and beyond. The pipeline will connect the northwest portion of the Alberta System at the existing Meikle River compressor station to the northeast portion of the system at the existing Woodenhouse compressor station. In addition, 26MW of compression will be added at the existing Meikle River compressor station.
Subject to regulatory approval, construction is anticipated to begin in late 2008. The first segment of the pipeline is expected to be completed in April 2009. The second segment is anticipated to be completed and in service in April 2010.
Hal Kvisle, president and CEO of TransCanada, said: The North Central Corridor is the most cost-effective facility to accommodate evolving gas supply and market dynamics both within and outside Alberta. We continue to work with our customers to find innovative solutions to meet their changing market needs.
