TransCanada Corporation has been selected by Progress Energy Canada Ltd. (Progress) being the successor by amalgamation of PETRONAS Carigali Canada Ltd. and Progress Energy Resources Corp. to design, build, own and operate the proposed $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 (B.C.) to the recently-announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert, B.C.
Progress and TransCanada expect to finalize definitive agreements in early 2013, subject to approvals by their respective Boards. TransCanada will immediately commence Aboriginal and stakeholder consultation and preparation of the relevant regulatory filings for this project under B.C. jurisdiction.
“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. “TransCanada has an industry leading safety record that we are extremely proud of, and we look forward to involving the skilled workforce in B.C. and across Canada to help us develop an important new component of B.C.’s growing natural gas infrastructure.
“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. “Our 60 years of pipeline experience, including 50 years in B.C., has taught us that to advance a project of this size, we must engage in open and meaningful discussions with Aboriginal communities and key stakeholder groups. We will initiate those conversations very soon.”
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 $1 to 1.5 billion, with an in-service date targeted for the end of 2015.
TransCanada currently owns and operates approximately 24,000 kilometres (15,000 miles) of natural gas pipelines in Western Canada including the Foothills Pipeline System in southeast B.C. and 360 kilometres (225 miles) in service or pending approvals in northeast B.C.. If approved, the Prince Rupert Gas Transmission project and TransCanada’s proposed Coastal GasLink Pipeline project to Kitimat would together add more than 1,400 kilometres (870 miles) to TransCanada’s Western Canadian natural gas transmission systems.
Information regarding the proposed Prince Rupert Gas Transmission project is as follows:
- Receipt point: near Fort St. John, B.C.
- Delivery point: Pacific Northwest LNG facility in Port Edward near Prince Rupert, B.C.
- Product: natural gas from B.C.’s abundant North Montney supply and elsewhere from the WCSB
- Length of route: approximately 750 kilometres (470 miles) of large diameter pipe
- Initial pipeline capacity: 2.0 billion cubic feet of gas per day with the ability to expand to 3.6 billion cubic feet of gas per day
- Anticipated jobs during construction: estimated 2,500 direct construction jobs over a three year construction period
- Estimated cost: detailed cost information will be developed following completion of project scoping and planning. The current estimate for the Prince Rupert Gas Transmission project is approximately $5 billion (2012 dollars)
- Regulatory process: applications for required regulatory approvals are expected to be made through applicable B.C. provincial and Canadian federal processes
- Estimated in-service date: end 2018 subject to regulatory and corporate approvals
In determining the final pipeline route, TransCanada will take into consideration many factors, including Aboriginal, stakeholder and government input, environmental influences, archaeological and cultural values, land use compatibility, safety, constructability and economics. As a member of the world Dow Jones Sustainability Index, TransCanada is an industry leader that is committed to minimizing the impact of its operations