TransCanada Corporation, the builder of the controversial Keystone XL pipeline, has agreed to build and operate another one, but this one won't require any American approval. That's because the Prince Rupert Gas Transmission project would feature a natural gas conduit that would run from the Montney region in this area, to a proposed liquefied natural gas terminal in Port Edward.
In a statement today, the company said the $5.1 billion line has a proposed initial capacity of two billion cubic feet per day. Gas producers in this area are seeking Asian markets for the heating and power plant fuel, and subject to government and corporate approvals, the line can be expected to begin operation in 2018.
Petronas, the Malaysian state-owned energy company, is on record saying a final investment decision on the export terminal, with an estimated cost of $9 to $11 billion dollars, is expected late next year. According to today's statement, Progress Energy Canada, which was purchased by Petronas last month for $5.2 billion dollars, selected Calgary-based TransCanada to build the pipeline, which will also be capable of expansion to 3.6 billion cubic feet per day.
We're also told TransCanada has plans for an extension of its Nova Gas Transmission pipeline to reach additional gas supplies in the North Montney region. At a cost of $1 to $1.5 billion, that pipeline could begin operation in 2015.
