National Energy Board Extends Sunset Clause for Construction to Begin on North Montney Pipeline Project

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The National Energy Board (NEB) is extending the date in the sunset clause for the North Montney Pipeline Project to June 10, 2017. The sunset clause originally stated that construction must begin before June 10, 2016 or approval for the project will expire. NOVA Gas Transmission Ltd. wrote to the NEB on March 28, 2016 asking that the sunset clause be extended for one year until June 10, 2017.

The North Montney Project would tie into the proposed Prince Rupert Gas Transmission Pipeline which is intended to ship natural gas to the Pacific NorthWest LNG plant in Prince Rupert, BC which is proposed by Progress Energy Canada Ltd. The Pacific NorthWest LNG project is currently being reviewed by the Canadian Environmental Assessment Agency.

In its request, NOVA Gas Transmission Ltd. said that it would not be in a position to begin construction of the pipeline until Progress Energy Canada Ltd. decides whether or not to proceed with the Pacific NorthWest LNG project.

In a letter to the proponents, the NEB said that the project is still in the public interest and that the original conditions attached to the project will require that it be designed, constructed and operated in a way that is safe and protects the environment.

This change to the date in the sunset clause does not come into effect unless it is approved by Governor in Council.


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