NOVA Gas Transmission Ltd. (NGTL) has signed agreements with Chevron Canada Limited and a partnership wholly owned and controlled by Apache Canada Ltd. for approximately 1.9 billion cubic feet (bcf) per day of firm natural gas transportation services in northeastern British Columbia.
However, construction of the proposed $1.9-billion Merrick Mainline Pipeline Project is dependent on regulatory approval and a positive final investment decision (FID) by Chevron and Apache on the Kitimat liquefied natural gas (LNG) export project.
The project will be a significant new link in British Columbia’s emerging LNG export market and will underpin the development of a major extension of the NGTL system, said parent TransCanada Corporation.
The pipeline will transport natural gas sourced through the NGTL System to the inlet of the Chevron/Apache proposed Pacific Trail Pipeline that will terminate at the Kitimat LNG terminal at Bish Cove near Kitimat.
The proposed project will extend the existing Groundbirch Mainline section of the NGTL System from near Dawson Creek through the Peace River and Caribou regional districts to its end point near the community of Summit Lake, B.C., about 42 kilometres north of Prince George. The project will consist of approximately 260 kilometres of 48-inch diameter pipe.
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 requirements. Aboriginal, landowner and community engagement and consultation activities for the Merrick project have begun and will be ongoing through the life of the 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,” Russ Girling, TransCanada president and chief executive officer, said in a news release. “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 bcf per day. NGTL is also in discussions with other parties that have expressed interest in transporting natural gas on the Merrick Mainline.
The Merrick Mainline Project is proposed as part of TransCanada’s long-term strategy to connect resources in northeast B.C. to the West Coast. The company currently has four major natural gas pipeline projects under development in the region totalling $12.6 billion in investment and is committed to ensuring they are all built responsibly and with minimal environmental impact, said Girling.
