By JUDY McKINNON
TransCanada Corp. said Wednesday it has been chosen by
Progress Energy to build, own and operate a 5 billion Canadian
dollar ($5.1 billion) pipeline project that would transport natural
gas to a new liquefied-natural-gas export terminal planned
off Canada's west coast.
The Pacific Northwest LNG
export terminal in British Columbia was proposed as part of the
multi-billion takeover of Progress Energy Resources Corp. by
Malaysian state-run energy giant Petronas, which closed
Calgary, Alberta-based TransCanada said it expects to
finalize definitive agreements for the Prince Rupert Gas
Transmission project early this year.
The proposed pipeline will transport natural
gas primarily from the North Montney gas-producing region
near Fort St. John, British Columbia to the LNG
export facility, which is aimed at exporting natural
gas to Asian markets.
The pipeline company also said it's planning to extend its
existing NOVA Gas Transmission Ltd. system in northeast B.C. to
connect both to the Prince Rupert Gas Transmission project and
to additional North Montney gas supply from Progress and other
parties. It estimates initial capital costs for the extension
at about C$1 billion to C$1.5 billion.
Before Petronas closed its takeover of Progress, the two had
said they were moving their LNG export project into the next phase of
engineering and said a final investment decision would be made
in late 2014. First LNG
exports are targeted for 2018.
Dow Jones Newswires