TransCanada Announces $2.4 Billion Expansion to Increase Market Access for WCSB Supply
February 15 2018 - 06:00AM
News Release – TransCanada Corporation (TSX:TRP) (NYSE:TRP)
(TransCanada) announced today that it will move forward with a $2.4
billion expansion of its NGTL System to connect incremental supply
and expand basin export capacity by one billion cubic feet of
natural gas per day (Bcf/d) at the interconnection with its
Canadian Mainline.
NGTL recently completed an open season for existing
and export capacity at the Empress/McNeill Export Delivery Point
that was oversubscribed. Shippers have executed binding agreements
for 1.0 Bcf/d of expansion capacity for firm service that will
commence in November 2020 and April 2021. The average of the
contract terms awarded for the expansion capacity is 28.6
years.
“The successful open season shows strong industry
support to significantly expand transmission capacity out of the
basin and improve market connectivity for Canadian natural gas
production,” said Russ Girling, TransCanada’s president and chief
executive officer. “We continue to work diligently with industry to
facilitate economic access for their natural gas to key export
markets, including access to Eastern Canada and the U.S. Northeast
through TransCanada’s Canadian Mainline and downstream
systems.”
NGTL also executed contracts for incremental firm
receipt service totaling 620 million cubic feet of natural gas per
day beginning in April 2021. These contracts will connect new
supply in the low-cost Montney, Deep Basin and Duvernay plays to
the NGTL System and provide shippers access to various local and
export markets.
“This program will provide much-needed
transportation solutions for Western Canadian natural
gas producers and unlock access to existing Canadian Mainline
capacity,” added Girling. “The NGTL System is a strategic
TransCanada asset and we are committed to providing shippers with
timely and competitive options to connect growing basin supply to
downstream markets throughout North America.”
The incremental receipt and export delivery
contracts will drive a $2.4 billion expansion program that will
include approximately 375 kilometres (233 miles) of large diameter
pipeline, compression facilities, meter stations and other
associated facilities. NGTL anticipates filing a project
description with the National Energy Board by the second quarter of
2018 to initiate the regulatory review process for the expansion
and, subject to regulatory approvals, it expects construction will
begin in 2019.
Today's announced $2.4 billion program supplements
NGTL’s current ongoing substantial capital expansion program,
bringing the total near-term NGTL growth commitment to
approximately $7.2 billion.
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 91,500 kilometres (56,900 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 6,100 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 4,800 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
and 3BL Media.
FORWARD-LOOKING INFORMATION
This 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 November 8, 2017 and 2016 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 Enquiries:Shawn Howard403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta / Stuart
Kampel403.920.7911 or 800.361.6522
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