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Two oil and gas companies from B.C. are teaming up to build a new natural gas pipeline.

Canada Provident Energy Ltd and AltaGas Ltd have joined forces, along with an unnamed senior producer, to lay a gas pipeline from a Montney gas plant into B.C.

The pipeline is expected to serve as a direct line for more than seven million cubic metres of natural gas per day from the Montney area. The pipeline will be 25-km long and is expected to cost $30 million to construct.

According to the agreement, Provident and AltaGas will each own a 30 per cent interest in the project.

Both companies say they will contribute $9 million to the project, which is expected to be fully operational by the end of 2011.

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