TransCanada to Complete $570 Million System Expansion by 2018 to Meet New Production Needs

TransCanada Corp (TSX:TRP,NYSE:TRP) announced that its wholly owned subsidiary NOVA Gas Transmission (NGTL) has signed contracts for about 2.7 billion cubic feet per day of new firm natural gas transportation. The contracts will require a $570 million system expansion for 2018.
As quoted in the press release:

“Our NGTL System is sitting on top of extensive natural gas supplies, making it well-positioned to unlock the resource and reliably and efficiently link it to growing markets,” said Russ Girling, TransCanada’s president and chief executive officer. “The system has been operating at capacity, and more capacity is needed in these key areas that support the growth of the prolific gas resource in the Western Sedimentary Basin.”
Significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand.
“Capturing these incremental volumes and constructing the new facilities will ensure NGTL can continue to efficiently and competitively meet the future natural gas transportation needs of our customers,” added Girling. “The expansion of the NGTL System is an important part of TransCanada’s industry leading $48 billion capital growth plan that includes $23 billion of new natural gas pipelines.”
The 2018 expansion program will increase the overall investment on the NGTL System beyond the already announced $7.5 billion of projects. Approximately $2.8 billion of these projects have received regulatory approval, with $800 million under construction, and an additional $1.7 billion of facilities are under regulatory review.

Click here to read the full TransCanada Corp (TSX:TRP,NYSE:TRP) press release.