TransCanada has signed agreements with Chevron and Apache for
approximately 1.9 billion cubic feet per day (Bcf/d) of firm
natural gas transportation services, officials announced
The proposed Merrick Mainline pipeline project will be a
significant new link in British Columbia's emerging liquefied
natural gas (LNG) export market.
The pipeline will transport natural gas sourced through
TransCanada's NGTL system to the inlet of Chevron and
Apache's proposed Pacific Trail pipeline (PTP) that will
terminate at the Kitimat LNG terminal at Bish Cove near
Kitimat, British Columbia.
The proposed project will be an extension from the existing
Groundbirch Mainline section of the NGTL system beginning
near Dawson Creek to its end point near the community of
The $1.9 billion project will consist of approximately 260
kilometres (161 miles) of 48-inch diameter pipe.
"The Merrick Mainline project will be designed, constructed
and operated utilizing TransCanada's extensive experience in
developing safe and reliable energy infrastructure," said
Russ Girling, TransCanada's CEO.
"We now have four major natural gas pipeline project
s under development in the
region totalling $12.6 billion in investment, and we are
committed to ensuring they are all built responsibly and with
al impact," he added.
TransCanada is continuing to advance its development work on
the project, including field studies, engineering and design
work, and pipeline routing, to support applications for
regulatory approvals and finalize project
Aboriginal, landowner and community engagement and
consultation activities for the Merrick Mainline project have
started and will be ongoing through the life of the project.
of the Merrick
Mainline is dependent on regulatory approval and a positive
final investment decision (FID) for the Kitimat LNG project.
"The initial work for the project is proceeding well, and we
anticipate filing an application with the National Energy
Board in the fourth quarter of 2014 for approvals to build
and operate the project," Girling said. "Subject to the
necessary approvals, we expect the Merrick Mainline to begin
service in the first quarter of 2020."
Under the commercial arrangements with Chevron and Apache,
delivery volumes will ramp up between 2020 and 2022 to an
aggregate volume of approximately 1.9 billion cubic feet/day.
NGTL is also in discussions with other parties that have
expressed interest in transporting natural gas on the Merrick
The Merrick Mainline project is a key component of
TransCanada's capital growth plan, which includes $38 billion
in commercially secured projects expected to be completed by
the end of the decade. These project
s are supported by strong
market fundamentals and underpinned by long-term contracts or
the revenue stability of cost-of-service regulation.