TC Energy is set to undertake a C$1.2bn ($910m) expansion of the NOVA Gas Transmission (NGTL) and Foothills pipeline systems in Western Canada under the West Path Delivery Program.
The expanded natural gas pipelines will connect to the GTN XPress Project, which has been sanctioned by TC PipeLines, in a separate announcement. TC PipeLines, is a subsidiary of TC Energy, which is developing the GTN XPress Project with an investment of around $335m.
TC Energy president and CEO Russ Girling said: “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.
“This $1.2 billion program brings our sanctioned expansions of NGTL and Foothills infrastructure to $10 billion, demonstrating our strong commitment to the long-term viability of the WCSB.”
According to TC Energy, the West Path Delivery Program is supported by nearly 258 million cubic feet per day of new firm service contracts. The contracts are for more than 30 years, starting between the fourth quarter of 2022 and the fourth quarter of 2023.
The expansion project will see the addition of nearly 119km of pipeline and associated facilities to the NGTL and Foothills pipeline systems.
Construction on West Path Delivery Program scheduled for 2021
TC Energy expects to file applications for approvals for the construction and operations of the facilities next year. Subject to receipt of regulatory approvals, the company is likely to begin construction as early as fourth quarter 2021.
The NGTL system is a 24,568km long pipeline system that transports natural gas from the Western Canadian Sedimentary Basin to markets in Canada and the US.
The Foothills System is a 1,241km long network of pipelines, made up of the Foothills B.C. and Foothills Saskatchewan lines. The pipeline system transports natural gas produced in Alberta to the US border.
TC PipeLines said that alongside TC Energy’s system expansions upstream, GTN XPress will improve market access and reliability for the increasing supplies from WCSB.
TC PipeLines’ general partner’s president Nathan Brown said: “The successful open season for incremental capacity demonstrates the significant continued interest out of the WCSB to secure access to high value downstream markets. Additionally, local distribution companies in the Pacific Northwest are looking at the WCSB to diversify their supply sources.
“GTN XPress reflects TC PipeLines’ and GTN’s commitment to providing customers timely and reliable access to these markets through appropriate facility replacements, expansions and services.”
