TC Energy to unveil NGTL expansion plan in December, CEO says

By Amanda Stephenson

CALGARY, Nov 5 (Reuters) - The CEO of TC Energy TRP.TO said on Thursday the Canadian energy company will unveil in December a "meaningful" expansion plan for its NGTL natural gas pipeline system that should satisfy the Alberta government's concerns about a capacity shortage in the province.

François Poirier said in an interview the company has been gauging commercial interest in a potentially significant expansion of NGTL, the main transportation hub for Western Canadian natural gas, post-2029.

He declined to say how much capacity TC Energy is considering adding to the system, but said that figure will be publicly released next month.

"We have a really good sense of what the actual demand is," Poirier said. "And I'm confident that we will be able to satisfy the government of Alberta's concern."

The Alberta government is increasingly concerned about a multi-year supply glut of natural gas in the western province, which it attributes to insufficient pipeline capacity growth.

A source with knowledge of the situation told Reuters this week the provincial government is considering changes to "open up access" to the gas network but declined to specify the potential changes.

Canadian media outlet The Narwhal reported in September, citing a leaked provincial cabinet document, that the Alberta government is considering regulation changes and creating new Crown corporations to spur growth in gas transmission.

TC Energy's NGTL system currently moves an average of 15 billion cubic feet of natural gas per day, gathering it from producers across the province and connecting it to markets, storage facilities and export connections across Canada and the United States.

The pipeline network is fully subscribed, and TC Energy has recently seen a "dramatic" increase in requests for service, Poirier said. The company has already committed to expanding it by 1 bcf per day before 2029.

But a Reuters source said the Alberta government is frustrated with what it sees as TC Energy prioritizing growth and investment in the US instead of in Alberta.

TC Energy's intention is to build, Poirier said. But the company is trying to negotiate a new investment framework for NGTL with its customers. He said the company wants a better risk-return ratio to address the capital costs for expanding the NGTL system and to put the return on par with its US projects.

While Poirier said he is hopeful a deal can be negotiated, TC Energy could ask the Canada Energy Regulator to adjudicate.

Canada is the world's fifth-largest producer of natural gas, around 60% of which comes from Alberta.