CALGARY, Alberta (Reuters) - TransCanada Corp said on Wednesday it was moving ahead with a C$1.5 billion ($1.14 billion) expansion of its Western Canadian gas pipeline system, further boosting access for producers in Alberta and British Columbia’s rich gas plays.
The latest investment increases expansion spending on the NOVA Gas Transmission line (NGTL) to more than C$9 billion, TransCanada said.
The expansion, which will connect producers in the gas-rich Montney and Deep Basin regions with industrial customers in Alberta, is underpinned by roughly 1.1 billion cubic feet per day (bcfd) of new service contracts, TransCanada said.
Construction on the 197 kilometer (122 miles) pipeline could start as soon as the third quarter of 2020, pending regulatory approvals.
TransCanada is set to report its third-quarter earnings before the market opens on Thursday.
Reporting by Julie Gordon in Vancouver; Editing by Richard Chang