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TransCanada to build British Columbia pipeline for Shell LNG export venture

06.05.2012  | 

TransCanada has been chosen by Shell and its LNG Canada joint venture partners to design, build, own and operate a pipeline that will transport natural gas from the Montney gas-producing region near Dawson Creek, British Columbia (BC) to the LNG export facility near Kitimat, BC.

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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 Kitimat, BC.

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 CEO.

“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. 

The 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 phase.

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 TransCanada’s 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 pipelines.

NGTL expects to elicit interest in and commitments for such service through an open season process in late 2012, the company said.

"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 Girling.

“The project will also create substantial employment opportunities for local, skilled labourers and businesses as part of our construction team," he continued.

“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."



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