Photo by: Reuters
TORONTO (miningweekly.com) – North American energy infrastructure firm TransCanada on Wednesday said that it would build a $1.9-billion pipeline to link up with Chevron Canada and Apache Canada’s Pacific Trail Pipeline, which would export liquefied natural gas (LNG) from a proposed facility near Kitimat, British Columbia.
The proposed Merrick Mainline Pipeline project would be a significant new link in British Columbia's emerging LNG export market, running 260 km north from Dawson Creek to its end point near the community of Summit.
There the 48-inch pipeline would feed into Chevron and Apache’s Pacific Trail Pipeline, which would transport the gas to the coast.
TransCanada said that it had signed agreements with Chevron and Apache to provide 1.9-billion cubic feet per day of firm natural gas transportation services to underpin development of a significant extension of TransCanada subsidiary NOVA Gas Transmission's system.
"We now have four major natural gas pipeline projects under development in the region totalling $12.6-billion in investment, and we are committed to ensuring they are all built responsibly and with minimal environmental impact."
Aboriginal, landowner and community engagement and consultation activities for the project had already started and would be ongoing through the life of the project. Construction of the Merrick Mainline is dependent on regulatory approval and a positive final investment decision for the Kitimat LNG project.
Subject to the necessary approvals, the company expects the Merrick Mainline to begin service in the first quarter of 2020.
TransCanada said it was advancing development work on the project, including field studies, engineering and design work and pipeline routing, to support applications for regulatory approvals and to finalise project requirements.
TransCanada expects to file an application to the National Energy Board late this year.
The Merrick Mainline Pipeline project is a key component of TransCanada's capital growth plan, which includes $38-billion in commercially secured projects expected to be completed by the end of the decade.
Including the latest project, TransCanada now has four significant natural gas pipeline projects under development in the region totalling $12.6-billion in investment.