TransCanada, Progress Energy in $5-bn pipeline deal
10 Jan 2013
TransCanda Corp, Canada's largest pipeline company, has secured the deal to build a $5-billion natural gas pipeline for Progress Energy Canada Ltd.
Progress Energy Canada was formed through the acquisition of Progress Energy Resources by Petronas Carigali Canada, a subsidiary of Malaysian national oil and gas giant Petronas, in a $5.2-billion deal approved by Ottawa in December.
Under the agreement, TransCanada will design, build and operate the Prince Rupert Gas Transmission project for the transportation of natural gas from the North Montney gas region near Fort St John in British Columbia (BC) to the proposed Pacific Northwest liquefied natural gas (LNG) export facility in Port Edward in BC.
The proposed pipeline will cover approximately 750 km and will have the initial capacity to transport 2 billion cubic feet (bcf) of gas per day and which could be expanded to 3.6 bcf.
The companies expect to finalise definitive agreements in early 2013, subject to approvals by their respective boards. TransCanada said that discussions with aboriginal communities and key stakeholder groups would be initiated very soon.
TransCanada's president and CEO Russ Girling said: ''The proposed Prince Rupert Gas Transmission project will allow British Columbians, and all Canadians, to continue to benefit from the responsible development of the growing supply of valuable natural gas resources in the Western Canadian sedimentary basin.''
