Progress Energy Canada Ltd. has selected TransCanada Corp. (TSX:TRP; NYSE:TRP) to design, build, own and operate a proposed $5 billion Prince Rupert natural gas pipeline.
The Prince Rupert Gas Transmission Project would transport natural gas primarily from the North Montney gas-producing region near Fort St. John to the Pacific Northwest LNG export facility near Prince Rupert.
According to TransCanada, Progress and TransCanada expect to finalize definitive agreements in early 2013.
Russ Girling, TransCanada's president and CEO, welcomed the project win.
"Together with our previously announced Coastal GasLink Pipeline project, this is the second major natural gas pipeline proposed to Canada's West Coast for TransCanada – demonstrating the confidence that LNG sponsors continue to place in our ability to design, build and safely operate pipeline systems," he said.
TransCanada currently owns and operates approximately 24,000 km of natural gas pipelines in western Canada. If approved, the Prince Rupert Gas Transmission project and TransCanada's proposed Coastal GasLink Pipeline project would together add more than 1,400 kilometres to the company's western Canadian natural gas transmission systems.