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TransCanada’s Saddle West natural gas project will have a transportation capacity of 355 MMcf/d

Calgary-based TransCanada Corp. (ticker: TRP) announced Wednesday that the company’s wholly-owned subsidiary, NOVA Gas Transmissions Ltd. will proceed with its $655 million Saddle West natural gas project. The project is expected to increase total natural gas transportation capacity on the northwest portion of the system by approximately 355 MMcf/d, TransCanada said in a press release.

The Saddle West Expansion Project will include 29 kilometers (18 miles) of 36-inch pipeline looping of existing mainlines, the addition of five compressor units at existing station sites and new metering facilities. An application to construct and operate the project will be filed with the National Energy Board in the third quarter of 2017, and subject to regulatory approvals, construction is expected to start in 2018, according to TransCanada.

“The NGTL System is a key component of TransCanada’s high-quality portfolio of energy infrastructure assets that continues to produce solid results in various market conditions,” said TransCanada Executive Vice President and President, Natural Gas Pipelines Karl Johannson. “Our strategy is to maintain and optimize NGTL’s competitive position and to focus on growing our established network to transport growing volumes of WCSB gas.”

The project will add capacity to service growing shale gas developments in the Montney, Duvernay and Deep Basin formations, with TransCanada saying the pipeline expansion is already supported by incremental firm service contracts.

The federal government conditionally approved a separate $1.3-billion expansion of the Nova Gas Transmission system in October, which will add 230 kilometres of pipeline and two compressor stations.

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