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Researched by Industrial Info Resources (Sugar Land, Texas)--TransCanada Corporation (NYSE:TRP) (Calgary, Alberta) announced plans to invest C$2.4 billion ($1.9 billion) to expand its NGTL natural gas pipeline system, which ships gas from Alberta and northeastern British Columbia to markets across North America. Most of the gas is gathered from Canada's Western Canadian Sedimentary Basin.
The expansion will carry an additional 1 billion cubic feet per day (Bcf/d) of natural gas to TransCanada's Canadian Mainline system. TransCanada has completed a successful open season for the additional volume, and shipping is planned to commence in November 2020. The company expects to file a project description with Canada's National Energy Board in the second quarter of this year to initiate the regulatory review process and, subject to approvals, expects to begin construction in 2019.
Among the NGTL projects being tracked by Industrial Info is a capacity expansion project that will include installing 171 miles of 16-inch and 48-inch-diameter pipeline to transport 381 million cubic feet per day of natural gas from St. Paul, Alberta, to connect to the NGTL mainline system in western Canada. Construction is set to begin early next year and be completed in mid-2021. For more information, see Industrial Info's project reports on the pipeline and compressor station near Saddle Lake, Alberta.
Last week's announcement came the same day as TransCanada released its strong earnings results for fourth-quarter and full-year 2017. The company reported fourth-quarter net income of C$861 million ($686.9 million), compared with a net loss of C$358 million ($285.6 million) in fourth-quarter 2016. Full-year net income was C$3.0 billion ($2.4 billion), compared with C$124 million ($99 million) in 2016. The strong results are due, in part, to TransCanada's successful integration of Columbia Pipeline Group, which it acquired in mid-2016.
The company said it completed approximately C$5 billion ($4 billion) of growth projects in 2017 and is continuing with its C$23 billion ($18.3 billion) near-term capital program and C$20 billion ($16 billion) in medium to longer-term projects, including the company's Keystone XL crude oil pipeline.
In the company's conference call, Chief Executive Officer Russ Girling said the C$23 billion in spending "includes approximately $C21 billion ($16.7 billion) in natural gas pipelines expansions that are driven by growth in North American natural gas supply in the Marcellus and Utica, as well as the Western Sedimentary Basin, along with demand growth in places like Mexico."
Among the natural gas projects to be placed in service this year is the Gulf Xpress project, which includes the addition of seven new compressor stations in Kentucky, Tennessee and Mississippi to increase reliability and access to gas shipped from the Appalachian Basin. The project has a total investment value of $375.5 million. For more information, see Industrial Info's project reports on the additions of compressor stations in Kentucky near Morehead, Edmonton, Grayson and Lancaster.
TransCanada's Mountaineer Xpress project also is expected to enter service this year and involves the construction of 170 miles of natural gas pipeline and new compressor stations in West Virginia. The pipeline will transport up to 2.7 Bcf/d of natural gas from Marshall County to Wetzel County in West Virginia. The project kicked off earlier this year and is expected to be in service in the fourth quarter. Welded Construction LP (Perrysburg, Ohio) is the general contractor on the project, which has an estimated total investment value of $270 million. For more information, see Industrial Info's project reports on Spread 1, Spread 2, and spreads 3 and 4.
Girling also discussed the company's controversial Keystone XL crude oil pipeline, which will carry oil from Alberta to connect with an existing line to the U.S. Gulf Coast. "During the fourth quarter, we continued to advance the project following Nebraska Public Service Commission's approval of a viable route through the state of Nebraska, which I'd remind you that we fully support. That was followed in January with the announcement that we have successfully secured 500,000 barrels per day affirmed 20-year commitments following an open season in late 2017." Nebraska was the sole remaining state to approve construction of the pipeline and altered TransCanada preferred route upon approval. For more information, see November 21, 2017, article - Nebraska Gives TransCanada OK to Build Keystone--with a Big Catch. While TransCanada has not officially announced that it will construct the pipeline, the company continues to make preparations for it and has included it in its growth budget. For more information, see Industrial Info's project report on the Nebraska section of the pipeline.
While pipelines are TransCanada's main business, the company also has a few power projects in the works. "We are advancing C$2 billion ($1.6 billion) of power projects, including the 900-megawatt Napanee gas-fired plant in Ontario," said Girling. "Construction on Napanee continues and is expected to be placed into service in 2018." Construction on the natural gas-fired, combined-cycle power plant began in early 2015 and is expected to be wrapped up in the fourth quarter. Matrix North American Construction Limited (Burlington, Ontario) is providing engineering, procurement and construction on the $1.2 billion project. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The expansion will carry an additional 1 billion cubic feet per day (Bcf/d) of natural gas to TransCanada's Canadian Mainline system. TransCanada has completed a successful open season for the additional volume, and shipping is planned to commence in November 2020. The company expects to file a project description with Canada's National Energy Board in the second quarter of this year to initiate the regulatory review process and, subject to approvals, expects to begin construction in 2019.
Among the NGTL projects being tracked by Industrial Info is a capacity expansion project that will include installing 171 miles of 16-inch and 48-inch-diameter pipeline to transport 381 million cubic feet per day of natural gas from St. Paul, Alberta, to connect to the NGTL mainline system in western Canada. Construction is set to begin early next year and be completed in mid-2021. For more information, see Industrial Info's project reports on the pipeline and compressor station near Saddle Lake, Alberta.
Last week's announcement came the same day as TransCanada released its strong earnings results for fourth-quarter and full-year 2017. The company reported fourth-quarter net income of C$861 million ($686.9 million), compared with a net loss of C$358 million ($285.6 million) in fourth-quarter 2016. Full-year net income was C$3.0 billion ($2.4 billion), compared with C$124 million ($99 million) in 2016. The strong results are due, in part, to TransCanada's successful integration of Columbia Pipeline Group, which it acquired in mid-2016.
The company said it completed approximately C$5 billion ($4 billion) of growth projects in 2017 and is continuing with its C$23 billion ($18.3 billion) near-term capital program and C$20 billion ($16 billion) in medium to longer-term projects, including the company's Keystone XL crude oil pipeline.
In the company's conference call, Chief Executive Officer Russ Girling said the C$23 billion in spending "includes approximately $C21 billion ($16.7 billion) in natural gas pipelines expansions that are driven by growth in North American natural gas supply in the Marcellus and Utica, as well as the Western Sedimentary Basin, along with demand growth in places like Mexico."
Among the natural gas projects to be placed in service this year is the Gulf Xpress project, which includes the addition of seven new compressor stations in Kentucky, Tennessee and Mississippi to increase reliability and access to gas shipped from the Appalachian Basin. The project has a total investment value of $375.5 million. For more information, see Industrial Info's project reports on the additions of compressor stations in Kentucky near Morehead, Edmonton, Grayson and Lancaster.
TransCanada's Mountaineer Xpress project also is expected to enter service this year and involves the construction of 170 miles of natural gas pipeline and new compressor stations in West Virginia. The pipeline will transport up to 2.7 Bcf/d of natural gas from Marshall County to Wetzel County in West Virginia. The project kicked off earlier this year and is expected to be in service in the fourth quarter. Welded Construction LP (Perrysburg, Ohio) is the general contractor on the project, which has an estimated total investment value of $270 million. For more information, see Industrial Info's project reports on Spread 1, Spread 2, and spreads 3 and 4.
Girling also discussed the company's controversial Keystone XL crude oil pipeline, which will carry oil from Alberta to connect with an existing line to the U.S. Gulf Coast. "During the fourth quarter, we continued to advance the project following Nebraska Public Service Commission's approval of a viable route through the state of Nebraska, which I'd remind you that we fully support. That was followed in January with the announcement that we have successfully secured 500,000 barrels per day affirmed 20-year commitments following an open season in late 2017." Nebraska was the sole remaining state to approve construction of the pipeline and altered TransCanada preferred route upon approval. For more information, see November 21, 2017, article - Nebraska Gives TransCanada OK to Build Keystone--with a Big Catch. While TransCanada has not officially announced that it will construct the pipeline, the company continues to make preparations for it and has included it in its growth budget. For more information, see Industrial Info's project report on the Nebraska section of the pipeline.
While pipelines are TransCanada's main business, the company also has a few power projects in the works. "We are advancing C$2 billion ($1.6 billion) of power projects, including the 900-megawatt Napanee gas-fired plant in Ontario," said Girling. "Construction on Napanee continues and is expected to be placed into service in 2018." Construction on the natural gas-fired, combined-cycle power plant began in early 2015 and is expected to be wrapped up in the fourth quarter. Matrix North American Construction Limited (Burlington, Ontario) is providing engineering, procurement and construction on the $1.2 billion project. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
