TransCanada Corporation, Calgary, Alb., announced that its wholly-owned subsidiary, NOVA Gas Transmission Ltd. (NGTL), has signed agreements with Progress Energy Canada Ltd. for approximately two billion cubic feet per day (Bcf/d) of firm gas transportation services to underpin the development of a major pipeline extension of the NGTL System.
“The proposed North Montney Mainline project will provide substantial new capacity on the NGTL System in response to the rapidly increasing development of natural gas resources in northeastern British Columbia,” Karl Johannson, executive vice-president and president, Natural Gas Pipelines, said in an Aug. 6 statement. “The long term, large volume commercial commitments that have been secured provide strong support for the project, which will contribute positively to the overall NGTL System.”
The proposed North Montney Mainline will be a large diameter extension from the existing Groundbirch Mainline section of the NGTL system in northeast British Columbia (B.C.). It will consist of two sections, Aitken Creek and Kahta, totaling approximately 305 kilometres (189 miles) in length, and will include associated metering facilities, valve sites and possible compression facilities. The project will also include an interconnection with TransCanada’s proposed Prince Rupert Gas Transmission (PRGT) project to provide natural gas supply to the proposed Pacific NorthWest LNG export facility near Prince Rupert, B.C.
Under the commercial arrangements with Progress, receipt volumes will ramp up between 2016 and 2019 to an aggregate volume of approximately 2.0 Bcf/d and delivery volumes to the PRGT project will be approximately 2.1 Bcf/d beginning in 2019. NGTL is also in discussions with other parties that have expressed interest in obtaining transportation services that would utilize the North Montney Mainline facilities. The total cost for the North Montney Mainline project is estimated to be approximately $1.5 billion.
NGTL is continuing to advance its development work on the project, including field studies, engineering and design work, and pipeline routing, to support applications for regulatory approvals and finalize project requirements. First Nations, landowner and community engagement and consultation activities for the North Montney Mainline project have commenced.
“The initial work for the project is proceeding well and we anticipate filing an application with the National Energy Board in the fourth quarter of 2013 for approvals to build and operate the facilities,” concluded Johannson. “If we receive the necessary approvals, we expect the Aitken Creek section to be operational in second quarter 2016, the Kahta section in second quarter 2017 and the export delivery facilities in 2019.”
