TC Energy Pushes Back on Alberta Report Flagging NGTL Capacity Gap

TC Energy said it is prepared to keep investing in its Alberta pipeline network to meet what it called generational demand for natural gas, responding to a leaked provincial cabinet report that questioned whether its system can keep pace.

The company, which moves three quarters of Western Canada's gas, has spent $15 billion over the last decade expanding its Nova Gas Transmission Ltd. (NGTL) system and has another $1 billion in projects planned, according to statements reported by the Winnipeg Free Press, CBC, The Globe and Mail and Global News. NGTL, in operation since 1957, ships an average of 15 billion cubic feet per day across Alberta and into northeastern British Columbia.

The Alberta cabinet report, whose contents were reported by multiple outlets after being leaked, concludes that NGTL is expected to run at full capacity until 2029 with limited plans to expand after 2030, according to the National Observer. It says TC Energy's future NGTL expansion plans are misaligned with the province's projected demand growth and that the company's dominant position has produced a market failure leaving key growth regions unable to access gas.

To address the shortfall, the report recommended the province create two Crown corporations to spur new natural gas transmission lines. The National Observer reported the two entities would cost between $53.9 million and $162.6 million.

Alberta Premier Danielle Smith said Saturday it is unlikely her government will launch a new Crown corporation to build out natural gas pipelines in the province, according to the National Observer.