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NEB recommends North Montney project

LNG Industry,

TransCanada Corp. announced that the Canadian National Energy Board (NEB) has issued a report recommending the federal government approval of the company’s proposed $1.7 billion North Montney Mainline project.

Commenting on the news, Russ Girling, TransCanada President and CEO, said: "The project is a critical component in the infrastructure chain between prolific and growing Canadian gas supply and existing and new markets, and the NEB recommendation is a significant milestone for the growth of our NOVA Gas Transmission Ltd (NGTL) System.

Emerging LNG industry

“This project and the NGTL System are important parts of TransCanada's $46 billion capital growth plan, which includes more than $14 billion in proposed natural gas pipeline projects to support the emerging liquefied natural gas (LNG) industry on the west coast of British Columbia."

The proposed project will provide substantial new capacity on the NGTL System to meet the transportation requirements associated with rapidly increasing development of natural gas resources in the Montney supply basin in northeastern British Columbia (B.C.). It will connect Montney and other Western Canadian Sedimentary Basin (WCSB) supply to both existing and new natural gas markets, notably emerging markets for LNG, and will generate long-term economic opportunities for B.C.

Pacific NorthWest LNG

The project will consist of two large diameter, 42 in. pipeline sections, Aitken Creek and Kahta, totalling approximately 301 km in length, and associated metering facilities, valve sites and compression facilities. It will also include an interconnection with TransCanada's proposed Prince Rupert Gas Transmission project to provide natural gas supply to the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility.

The initial capacity of the North Montney Mainline will allow the shipment of approximately 2.4 billion ft3/d of natural gas. Progress Energy Canada Ltd, a subsidiary of Petronas, has contracted for 2.0 billion ft3/d of firm receipt service and 2.1 billion ft3/d of firm delivery service. Other producers have signed contracts for 78 million ft3/d.

TransCanada can begin construction on the North Montney Mainline project only after a positive final investment decision (FID) has been made on the proposed PNW LNG project.

Adapted from press release by Katie Woodward

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