The Canadian government on Nov. 30 approved an expansion to TC Energy's NOVA Gas Transmission Transmission Ltd. (NGTL) pipeline system in Alberta, which will help improve market access for western Canadian natural gas.
The West Path Delivery 2023 (WP2023) project will add about 40 km (25 miles) of new natural gas pipeline to the existing 25,000-km NGTL system, which ships gas across Canada and to U.S. markets.
It is part of a C$1.2 billion ($893.3 million) expansion program first announced by TC in 2019 and underpinned by approximately 258 MMcf/d of new long-term firm service contracts.
TC said it was pleased with the decision and construction was scheduled to begin in the first quarter of 2023, with an anticipated in-service date of Nov. 1, 2023.
"Our expansion programs are an important and integral part in bringing on additional natural gas pipeline capacity to meet growing demand across North America and globally as we work to support energy transition and energy security needs," the company said in a statement.
Canadian natural gas production has grown to record levels of nearly 18 Bcf/d, but congestion on export pipelines can lead to gas being stranded in Alberta and British Columbia, resulting in volatile market moves and deep prices discounts.
Federal natural resources minister Jonathan Wilkinson approved the project with 34 conditions related to environmental protections and the involvement of Indigenous people through employment and training.
The government said the project will create more than 1,160 full-time jobs in Alberta during construction and contribute roughly C$180 million to the province's economy.
Recommended Reading
Paisie: Geopolitics, Economic News Rattle Oil Markets
2024-08-21 - Demand is expected to outstrip supply in third-quarter 2024, with prices in the $80s.
Report: FTC Probes Hess, Diamondback, Oxy Over OPEC Communications
2024-07-19 - Investigators are looking for evidence that executives at Hess Corp., Diamonddack Energy or Occidental Petroleum attempted to collude with OPEC officials on oil market dynamics, according to a Bloomberg report.
US Senate Committee Probes Oil Producers on Price Collusion with OPEC
2024-06-28 - The producers the committee is probing include Exxon Mobil, Chevron, ConocoPhillips and 14 others.
Supreme Court’s Uinta Basin Rail Case Raises Stakes for LNG, Pipelines
2024-07-10 - The lawsuit, involving crude transport via railway in the Uinta Basin, is part of a larger intragovernmental fight that could have implications for how FERC decides pipeline and LNG plant permitting.
What's Affecting Oil Prices This Week? (July 15, 2024)
2024-07-15 - Stratas Advisors expects economic news to put some downward pressure on oil prices during the upcoming week.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.