TransCanada said its second binding expansion capacity open season for the NOVA gas transmission system with 280 million cubic feet per day of firm service on offer was oversubscribed.
The open season closed on March 15, with an average awarded contract term of approximately 22 years, TransCanada said.
This capacity offering follows an open season held in January 2018 for 1.0 Bcf/d of expansion capacity at the Empress/McNeill export delivery point.
The service for the open season closed on March 15 is targeted to start in November 2021, while the January open season service is between November 2020 and April 2021, underpinning the $2.4 billion NGTL system expansion.
TransCanada said the earlier open season, like the latest one for the same delivery point, was also oversubscribed.
NGTL is working to finalize the scope of expansion facilities required to meet the incremental service requirements resulting from this open season, and anticipates an expansion investment of approximately $120 million.
Any expansion facilities will be in addition to NGTL’s existing capital expansion programs totaling approximately $7.2 billion.
Speaking of the results of the open season, Tracy Robinson, TransCanada’s senior vice president said it proves the role NGTL system has in transporting natural gas out of the Western Canadian Sedimentary basin while expanding market connectivity.