Pipeline to extend to proposed Prince Rupert LNG terminal

CALGARY — TransCanada Corp. says it’s building a $ 1.5- billion extension to its pipeline system in northeastern British Columbia that will help deliver natural gas to an export terminal planned for Prince Rupert.

The North Montney Mainline will extend TransCanada’s existing Groundbirch pipeline by adding some 305 kilometres of new large- diameter pipe.

Progress Energy, a subsidiary of Malaysian energy giant Petronas, has signed up to ship 56.6 million cubic metres per day on the North Montney Mainline. TransCanada says it’s also in talks with other potential customers.

Progress is planning to build a liquefied natural gas terminal near Prince Rupert so the resource can be exported to lucrative Asian markets.

The North Montney Mainline will link up with a separate $ 5- billion pipeline that TransCanada is building to connect northeastern B. C. gas with Progress’ Prince Rupert terminal, called Pacific Northwest LNG. TransCanada aims to file a regulatory application later this year for the North Montney line.

The southern segment of the North Montney line should be up and running by the second quarter of 2016, the northern portion a year later, and the export delivery facilities in 2019.