TransCanada to connect with Pacific Northwest LNG
Petronas from Malaysia and its Calgary based subsidiary, Progress Energy Canada, selected TransCanada to design, build, own and operate (BOO) the Prince Rupert gas transmission project in British Columbia.
Then on January 9th, Petronas and Progress decided to move ahead on this strategic natural gas supply to their Pacific Northwest liquefied natural gas (LNG) export facility project in British Colombia.
Progress other assets are located in the Foothills in British Columbia and in the Deep Basin in Alberta.
If the final route is not yet fully decided, the Prince Rupert gas transmission pipeline should start from Fort St John and end up in Port Edward, near Prince Rupert.
To be located in the Lelu Island in the District of Port Edward, near Prince Rupert, the Pacific Northwestern LNG project was originally planned by Progress with a total capacity of 7.4 million t/y of LNG with two LNG trains, with a third LNG train of 3.8 million t/y to be added in a second phase.
After completing the feasibility study, Petronas and Progress are preparing the pre-front end engineering and design (pre-FEED) of the Pacific Northwestern LNG project for a final investment decision (FID) expected in mid-2014.
Pacific Northwestern LNG office and project team will be located in Vancouver, British Columbia.
Petronas – Progress to invest $6 billion in Prince Rupert gas transmission project
In a second phase, the Prince Rupert gas pipeline should see its capacity expanded to 3.6 bcf/d.
In addition to this connection, Petronas and Progress are planning on the next three years to build a local network of pipelines to gather the natural gas production of the Western Canada Sedimentary Basin (WCSB) and collect it to the Nova Inventory Transfer (NIT) trading hub and the NGTL System.
This network of pipelines should increase the capital expenditure by $1 to $1.5 billion to the Prince Rupert gas pipeline project.
In respect with required approvals from British Columbia and Canada Governments, and with on going discussions with First Nations and stakeholders, Petronas and Progress expect TransCanada to have completed the Prince Rupper gas transmission pipeline project in 2018.
TransCanada secured this Prince Rupert Gas Transmission Pipeline project from Petronas and Progress to supply the Pacific Northwest LNG project after winning in June 2012 the Coastal Gas Link pipeline project to feed the Shell Canada LNG project in Kitimat.