TransCanada Corporation announced Wednesday that it was selected by Progress Energy Canada Ltd. to design, build, own and operate the proposed $5 million Prince Rupert Gas Transmission project. This proposed pipeline will transport natural gas primarily from the North Montney gas-producing region near Fort St. John, British Columbia to the recently-announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert, British Columbia.
Progress and TransCanada expect to finalize definitive agreements in early 2013, subject to approvals by their respective Boards. In addition, TransCanada proposes to extend its existing NOVA Gas Transmission Ltd. (NGTL) system in northeast British Colombia to connect both to the Prince Rupert Gas Transmission project and to additional North Montney gas supply from Progress and other parties. Initial capital cost estimates associated with extensions of the NGTL System are approximately $1 to 1.5 billion, with an in-service date targeted for the end of 2015.
TransCanada currently owns and operates approximately 24,000 kilometers (15,000 miles) of natural gas pipelines in Western Canada including the Foothills Pipeline System in southeast British Columbia and 360 kilometers (225 miles) in service or pending approvals in northeast British Columbia. If approved, the Prince Rupert Gas Transmission project and TransCanada's proposed Coastal GasLink Pipeline project to Kitimat would together add more than 1,400 kilometers (870 miles) to TransCanada's Western Canadian natural gas transmission systems.