TransCanada, through its wholly-owned subsidiary NOVA Gas Transmission (NGTL), has agreed for Progress Energy Canada to add gas transportation services for its major pipeline extension of the NTGL System in British Columbia.
Under the deal, Progress Energy Canada will transport around two billion cubic feet a day (Bcf/d) of natural gas.
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The proposed North Montney Mainline along Aitken Creek and Kahta will be a large-diameter extension from the existing Groundbirch Mainline section of the NGTL system.
The project will include associated metering facilities, valve sites and possible compression facilities. It also includes 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 in British Columbia.
Receipt volumes will be increased between 2016 and 2019 to an aggregate volume of around 2 Bcf/d. Delivery volumes to the PRGT project will be around 2.1 Bcf/d beginning in 2019.
Natural Gas Pipelines executive vice-president and president Karl Johannson said that the new capacity of the NGTL System is in response to the rapidly increasing development of natural gas resources in northeastern British Columbia.
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By GlobalData"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," he said.
The initial work on the project is proceeding and the company is expected to file an application with the National Energy Board in the fourth quarter of 2013 for approvals to build and operate the facilities.
"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," Johannson added.
The total cost for the North Montney Mainline project is estimated to be approximately $1.5bn.
Image: The pipeline extension will increase the capacity to 2 Bcf/d; Photo: courtesy of Wilfra.
