TC Energy (NYSE:TRP) Corporation TRP has been granted approval for the 2021 NOVA Gas Transmission Ltd. (“NGTL”) System Expansion Project by the federal government of Canada. Per Seamus O’Regan, Natural Resources Minister, the $2.3-billion expansion project was approved on the basis of facts and science for the betterment of the local population and wildlife protection.
TC Energy expects the project’s approval to enable it to immediately proceed with the manufacturing activities, following the completion of regulatory activities. The compressor station field activities are expected to commence in December 2020, with the pipeline-construction activities planned to start next January. The approved expansion will extend the existing 24,568-kilometer system by 344 kilometers.
The new pipeline will stretch from the western parts of Red Deer to Grande Prairie, Alta, delivering natural gas produced in the Western Canadian Sedimentary Basin to markets in Canada and the United States.
The project is estimated to generate up to 5,500 well-paid construction jobs for indigenous and non-indigenous workers, and would contribute $1.2 billion to Alberta’s economy. This, in turn, will bring economic advancement for local communities, and address environmental risks and endangered species.
NGTL will aid Canada’s plan to rapidly phase-out traditional coal-fired electricity by 2030 to improve emission-free growth and accelerate environmental-protection. O’Regan mentioned that the federal government’s conditions for the expansion include certain measures, namely the restoration of 3,840 hectares of caribou habitat. Under the condition, a local working group will be established to assist in the restoration process.
TC Energy is a premier natural gas-focused midstream energy infrastructure provider in Canada, the United States, and Mexico. The firm recently offered to acquire all outstanding units of its pipeline partnership TC Pipelines (NYSE:TCP) TCP that it does not completely own. It is part of the ongoing simplification of corporate structures in the MLP space along the lines of Enbridge (NYSE:ENB) INC. ENB and Kinder Morgan (NYSE:KMI) KMI. The transaction is aimed at better corporate governance and lower cost of capital in a softer market.
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