TransCanada moves ahead on Vaughan pipeline

dailycommercialnews.com
Nov. 11, 2014

TransCanada Corporation is moving forward with its Vaughan pipeline project and associated facilities as part of $475 million in pipeline and facility expansions within the southern Ontario section of the Canadian Mainline system.

"Over the past year, TransCanada has announced plans to invest almost $2 billion in facility enhancements to allow growing supplies of Marcellus gas to reach Ontario and Quebec markets," said Russ Girling, president and chief executive officer of TransCanada. "These enhancements help minimize the duplication of infrastructure, reduce delivery costs and improve the diversification of gas supply to markets in Eastern Canada."

The Vaughan pipeline and associated facilities are expected to cost about $220 million and be in-service in November 2016.

Construction of TransCanada's Kings North Connection, Parkway West Connection and Hamilton Area Project are expected to cost about $255 million and be in-service in November 2015

This is the next step of development for natural gas infrastructure in southern Ontario and involves a partnership between TransCanada, Enbridge Gas Distribution, Gaz Metro and Union Gas.

For example, TransCanada is proposing the construction of a new buried pipeline to construct called the Kings North Connection, which will be a new natural gas transmission pipeline in the communities of Vaughan, Brampton and Toronto.

The project involves the construction of about 11 kilometres of 914.4 millimetre (36 inch) pipeline and associated assembly pipe at the upstream and downstream tie-in locations.

The proposed pipeline route is planned to be constructed within a new right-of-way and will interconnect new natural gas facilities proposed by Enbridge with TransCanada's existing pipeline.

It will extend from a new mainline valve at the existing TransCanada Line 914.4 mm pipeline, located north of Major Mackenzie Drive and about 1.4 km east of Highway 50, south to a new tie-in valve that will connect to Enbridge's proposed Albion Station in Toronto.

The route is proposed to follow, in part, an existing hydro corridor and the proposed Highway 427 extension to maximize compatibility with existing and planned infrastructure.

The new pipeline will connect a new Enbridge meter station at Albion Road in Toronto to TransCanada's existing pipeline at Major MacKenzie Drive in Vaughan.

The partnership will reduce the number of new natural gas pipelines required in the Greater Toronto Area.

"Over the past few years we have seen significant changes to where our customers get the gas they need, and the configuration they need to get it," said Girling. "These enhancements demonstrate how we are responding to changing market needs, building new capacity to meet demand and maximizing the efficiency of our Canadian Mainline system."

These projects are backed by long-term, binding agreements and have been developed to respond to changing market needs. All of these projects are subject to regulatory approval.