TORONTO (miningweekly.com) – Pipeline operator TransCanada has signed new deals to move natural gas to market that will require a further $570-million investment in system expansion by 2018.

Subsidiary Nova Gas Transmission (NGTL) had signed contracts for about 2.7-billion cubic feet a day of new production, which would push the current infrastructure beyond its limits.

"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. 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,” TransCanada president and CEO Russ Girling stated.

Significant growth in unconventional natural gas supplies in north-western Alberta and north-eastern British Columbia were the main drivers of these new contracts, coupled with continued growth in market demand, the company advised.

Girling noted that the expansion of the NGTL system was a critical part of TransCanada's $48-billion capital growth plan that included $23-billion of new natural gas pipelines.

The 2018 expansion programme would increase the overall investment on the NGTL System beyond the already announced $7.5-billion of projects. About $2.8-billion of these projects had already received regulatory approval, with $800-million under construction and a further $1.7-billion of facilities under regulatory review.

The 2018 expansion included multiple projects that total 88 km of 20- to 48-inch diameter pipelines, one new compressor, about 35 new and expanded meter stations and other associated facilities.

TransCanada advised that it would file applications to build and operate the various components of the 2018 expansion programme with the National Energy Board between the second and fourth quarters of 2016. Subject to regulatory approvals, construction was expected to start in 2017, with all facilities expected to be in service in 2018.