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 last month.
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