TransCanada Corporation will move forward with an $85-million expansion of its NOVA Gas Transmission Ltd. system that will connect growing Western Canadian Sedimentary Basin natural gas supply to a proposed new petrochemical facility near Grande Prairie.
The expansion project will be used to deliver natural gas to Nauticol Energy Ltd.’s proposed $2 billion methanol facility. The company has executed long-term firm delivery service contracts for 308 mmcf/d beginning in September 2021 to underpin the project.
“The WCSB has extensive low-cost competitive gas supplies and the connection of new value-added markets is important to the long-term economic viability of the basin” Tracy Robinson, TransCanada’s executive vice-president, Canadian natural gas pipelines, said in a statement.
“With more than $9 billion in proposed expansion projects for the NGTL System, NGTL remains strongly focused on connecting existing and new WCSB supply with intra-basin and export markets through its safe and reliable pipeline infrastructure.”
The project consists of approximately 28 kilometres (17 miles) of 24-inch pipeline and a new delivery meter station.
NGTL expects to file an application for approval to construct and operate the facilities with the National Energy Board in the first quarter of 2020. Pending receipt of regulatory approvals, construction will begin as early as the fourth quarter of 2020.