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TransCanada to Expand Eastern Mainline Delivery Service

TransCanada Corp. announced plans Friday for a C$160-million (US$128-million) addition to its natural gas mainline's delivery service across Ontario, Quebec and the northeastern United States.

Shippers have signed 15-year contracts for about 80 MMcf/d using an expansion of a compressor station near Toronto at Vaughan, TransCanada said. A construction application to the National Energy Board (NEB) is scheduled for early 2018.

A completion target date of Nov. 1, 2019 has been set for the project, which will increase deliveries in southwestern Ontario, in French Canada via Trans Quebec & Maritimes Pipeline, and in the northeastern United States via Portland Natural Gas Transmission. The new capacity is forecast to carry mixed streams of Canadian- and U.S.-sourced production.

On the British Columbia western end of the TransCanada network, meanwhile, one of two additions planned to support liquefied natural gas (LNG) exports remains live, the company reported in its 2017 second-quarter financial review.

Work continues on Coastal GasLink, a conduit planned to supply the proposed LNG Canada tanker terminal with northern shale production. TransCanada said it will receive support payments -- C$80 million (US$64 million) this September then C$7 million (US$5.6 million) every financial quarter until a delayed decision is made on whether to build the terminal -- under a project agreement with the export consortium led by Shell Canada.

In its second-quarter report to shareholders, TransCanada repeated a prediction earlier this week that it will receive as yet undisclosed compensation later this year for termination of an agreement to build Prince Rupert Gas Transmission across BC. The project died when the Asian entry in the BC gas tanker export lineup, Pacific NorthWest LNG, cancelled its terminal project.

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