TransCanada has been selected by Shell and its LNG Canada
joint venture partners to design, build, own and operate the
proposed Coastal GasLink project, an estimated $4-billion
pipeline that will transport natural gas from the Montney
gas-producing region near Dawson Creek, British Columbia (BC)
to the liquefied natural gas (LNG) export facility near
The LNG Canada project is a venture led by Shell with
partners Korea Gas, Mitsubishi and PetroChina.
Shell and TransCanada are working toward the execution of
definitive agreements on the Coastal GasLink project, they said.
"Our team has the expertise to design, build and safely
operate pipeline systems, said Russ Girling, TransCanada
We look forward to having open and meaningful
discussions with Aboriginal communities and key stakeholder
groups, including local residents, elected officials and the
Government of British Columbia, where we will listen to
feedback, build on the positive and seek to address any
potential concerns, he added.
broader project is for a two-train, 12
million tpy LNG export terminal at Kitimat, with a final
investment decision slated for 2015 and exports by 2019,
potentially rising to 24 million tons.
Shell has a 40% stake and the three Asian companies 20%
each, or the equivalent of 2.4 million tpy each in the first
The final pipeline route will consider Aboriginal and
stakeholder input, the environment, archaeological and
cultural values, land use compatibility, safety,
constructability and economics, officials said.
In addition to the transportation of BC natural gas to the west
coast, Coastal GasLink will provide options for shippers to
access gas supplies through an interconnection with
TransCanadas NGTL system and the liquid NIT trading hub
operated by TransCanada, the company said.
A proposed contractual extension of TransCanada's NGTL
system using capacity on the Coastal GasLink pipeline, to a
point near the community of Vanderhoof, BC, will allow NGTL to
offer delivery service to shippers interested in gas
transmission service to interconnecting natural gas
NGTL expects to elicit interest in and commitments for such
service through an open season process in late 2012, the
"The potential Coastal GasLink pipeline project will allow
British Columbians, and all Canadians, to benefit from the
responsible development of valuable natural gas resources and
will provide access to new markets for that gas, said
The project will also create substantial employment
opportunities for local, skilled labourers and businesses as
part of our construction team," he
We know the value and benefits that strong
relationships in British Columbia can bring to this project, and we look forward to
deepening those ties as our extensive pipeline network grows to
meet market and customer needs."