TransCanada has been selected by Progress Energy Canada Ltd. 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, B.C. to the recently announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert, B.C.
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: 470 miles)of large diameter pipe; Initial pipeline capacity: 2 2 Bcf/d with the ability to expand to 3.6 Bcf/d; Anticipated jobs during construction: estimated 2,500 direct jobs over a three-year period; Current estimate for the Prince Rupert Gas Transmission project is $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; and estimated in-service date: end 2018 subject to regulatory and corporate approvals.
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 the project under B.C. jurisdiction.
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.