Progress Energy makes progress on Prince Rupert gas line

Progress Energy Canada Ltd. has selected TransCanada Corp. to design, build, own, and operate the proposed 470-mile Prince Rupert Gas Transmission project. This large-diameter pipeline will transport 2 bcfd of natural gas primarily from the North Montney gas-producing region near Fort St. John, BC, to the recently announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert, BC. It will be expandable to 3.6 bcfd.

Pacific Northwest LNG moved to pre-FEED last month following a successful feasibility study. Progress expects a final investment decision on the project in late 2014, with first LNG exports in 2018 (OGJ Online, Dec. 5, 2012).

Progress and TransCanada expect to finalize definitive agreements on the $5 billion Prince Rupert pipeline project in early 2013, subject to approvals by their respective boards. TransCanada will immediately begin stakeholder consultation and regulatory filings and expects a yearend-2018 in-service date.

TransCanada also proposed extending its existing Nova Gas Transmission Ltd. (NGTL) system in northeast British Columbia to connect both to the Prince Rupert Gas Transmission project and to additional North Montney gas supply from Progress and other parties. The extension would allow Pacific Northwest LNG export to access both North Montney supplies and other Western Canada Sedimentary Basin supplies through the Nova Inventory Transfer trading hub and the NGTL pipeline network. TransCanada estimates NGTL expansion costs at $1-1.5 billion with a yearend-2015 in-service date.

Canada approved Petronas Carigali Canada Ltd.’s acquisition of Progress Energy Resources Corp. last month (OGJ Online, Dec. 17, 2012). Progress Energy Canada Ltd. is the amalgamation of the two companies.

Contact Christopher E. Smith at chriss@ogjonline.com.

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