Canada's government on Wednesday granted conditional approval for an expansion to TC Energy's (NYSE:TRP) NOVA Gas Transmission pipeline system in Alberta, which will help improve market access for western Canadian natural gas.
The West Path Delivery 2023 project will add 40 km (25 miles) of new natural gas pipeline to the existing 25K km NGTL system, which ships gas across Canada and to U.S. markets.
Production of Canadian natural gas has climbed to record levels of nearly 18B cf/day, but congestion on export pipelines has left gas stranded, causing market volatility and deep price discounts.
Natural Resources Canada imposed 34 binding conditions related to environmental protection and the involvement of Indigenous people in employment and training.
Earlier this week, TC Energy (TRP) guided for FY 2023 comparable EBITDA to increase 5%-7% Y/Y and forecast higher costs for the Coastal GasLink pipeline project.