TransCanada Corporation (TRP - Free Report) announced the commissioning of its Sundre Crossover Project in central Alberta. The project involves an investment of about $100 million.
The company’s capability to transfer natural gas on TransCanada’s NOVA Gas Transmission Ltd. (“NGTL”) System to downstream pipelines and main markets in the Pacific Northwest and California will receive a boost from the project. The new facilities deliver an additional capacity of 228 million cubic feet of natural gas per day on the NGTL System.
The construction of about 21 kilometers of 42-inch diameter pipeline in Mountain View County, east of the town of Sundre, Alberta, was part of the project.
TransCanada committed an amount of $7.2 billion for near-term growth capital of the NGTL System. This was to be utilized, subject to regulatory approvals, for increasing total NGTL System delivery capacity of clean-burning natural gas by 2.5 billion cubic feet per day by 2021.
The project engaged about 500 employees and contractors during the course of construction. A total of more than 160,000 dedicated hours were contributed by the personnel to complete the project safely and on schedule. The company spent more than $4 million in the town of Sundre and surrounding areas during construction. Mountain View County will now receive an estimated $188,000 in additional taxes paid annually during the operation of the pipeline.
The NGTL System, an extensive natural gas pipeline system in Western Canada, includes about 24,320 kilometers of pipeline and related facilities.
TransCanada operates one of the largest natural gas transmission networks that stretches over more than 91,900 kilometers (57,100 miles), covering nearly all major gas supply basins in North America. A principal provider of gas storage and associated services, TransCanada offers storage capacity of 653 billion cubic feet. Currently, TransCanada owns or has interests in about 6,100 megawatts of power generation in Canada and the United States. The company develops and operates one of North America’s leading liquids pipeline systems that extends about 4,900 kilometers (3,000 miles), linking growing continental oil supplies to key markets and refineries.
TransCanada’s shares have lost 12% in the last three months, compared with the industry’s 16.7% decline.
Zacks Rank & Key Picks
TransCanada carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Continental Resources, Inc (CLR - Free Report) , Northern Oil and Gas Inc (NOG - Free Report) and SunCoke Energy Inc (SXC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources is an independent oil and natural gas exploration and production company. It delivered an average positive earnings surprise of 64.9% over the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
SunCoke Energy produces metallurgical coke in the United States. The company delivered an average positive earnings surprise of 130.6% in the last four quarters.
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