Pacific Northwest LNG selects operator of feed-gas pipeline

Progress Energy Canada Ltd. (an amalgamation of PETRONAS Carigali Canada Ltd. and Progress Energy Resources Corp.) has selected TransCanada Corp. to design, build, own and operate the proposed CAN$ 5 billion Prince Rupert Gas Transmission project. This proposed pipeline will transport natural gas primarily from the North Montney gas-producing region near Fort St. John, British Columbia to the recently-announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert, B.C. Progress and TransCanada expect to finalise definitive agreements in early 2013, subject to approvals by their respective Boards.

“The proposed Prince Rupert Gas Transmission project will allow British Columbians, and all Canadians, to continue to benefit from the responsible development of the growing supply of valuable natural gas resources in the WCSB”, said Russ Girling, TransCanada’s President and CEO.

“Together with our previously announced Coastal GasLink Pipeline project, this is the second major natural gas pipeline proposed to Canada’s West Coast for TransCanada – demonstrating the confidence that LNG sponsors continue to place in our ability to design, build and safely operate pipeline systems,” added Girling.

In addition, TransCanada proposes to extend its existing NOVA Gas Transmission Ltd. (NGTL) system in northeast B.C. to connect both to the Prince Rupert Gas Transmission project and to additional North Montney gas supply from Progress and other parties. This new infrastructure will allow the Pacific Northwest LNG export facility to access both the abundant North Montney supplies as well as other Western Canada Sedimentary Basin (WCSB) gas supply through the NOVA Inventory Transfer (NIT) trading hub and the extensive existing NGTL pipeline network. Initial capital cost estimates associated with extensions of the NGTL System are approximately CAN$ 1 to 1.5 billion, with an in-service date targeted for the end of 2015.

Adapted from press release by Peter Farrell.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09012013/pacific-northwest-lng-selects-operator-of-feed-gas-pipeline_166/