Construction is scheduled to start in December on a 3.5 Bcf/d capacity expansion by TC Energy Corp.’s supply collection network in Alberta and British Columbia, Nova Gas Transmission Ltd. (NGTL).

The Calgary pipeline conglomerate set the target date Tuesday for the C$2.3 billion ($1.7 billion) project, dubbed the 2021 NGTL System Expansion after the federal cabinet announced a delayed decision to grant final project approval with toughened environmental and native rights conditions.

The project caters to evolving natural gas production locations and shipper service requests with 344 kilometers (206 miles) of 48-inch diameter pipeline. It is to include three compressors.

“This project is a critical component of the C$9.9 billion [$7.4 billion] NGTL infrastructure program...