A $5.1 billion natural gas pipeline that will transport liquefied natural gas off Canada's West Coast will be built by TransCanada Corp., the builder of the Keystone XL oil pipeline. Bloomberg reported the Prince Rupert Gas Transmission project could transport up to 2 billion cubic feet of LNG a day from the Montney region in Alberta and British Columbia to an export facility Port Edward, B.C. The pipeline still needs to be approved by the government.
“From a trading perspective, we view today's announcement as an unexpected positive development that should provide support for [TransCanada] shares,” said Pierre Lacroix, an analyst at Desjardins Securities Inc., according to Bloomberg.
TransCanada was selected to build the pipeline by Progress Energy Canada Ltd., the Wall Street Journal reported. TransCanada said it plans to finalize plans for the pipeline early this year. The LNG export facility is aimed at exporting natural gas to Asian markets, the article stated.
TransCanada said it also plans to extend its existing pipeline in northeast British Columbia, called the NOVA Gas Transmission system, in order to connect the new pipeline and the additional gas supply from North Montney. That project is expected to cost more than $1.5 billion.