TransCanada Corp. (>> TransCanada Corporation) said Wednesday it has been chosen by Progress Energy Canada Ltd. to build, own and operate a 5 billion Canadian dollar ($5.1 billion) pipeline project that would transport natural gas to a new liquefied-natural-gas export terminal planned off Canada's west coast.
The Pacific Northwest LNG export terminal in British Columbia was proposed as part of the multi-billion takeover of Progress Energy Resources Corp. by Malaysian state-run energy giant Petroliam Nasional Bhd (PET.YY), which closed last month.
Calgary, Alberta-based TransCanada said it expects to finalize definitive agreements for the Prince Rupert Gas Transmission project early this year. The proposed pipeline will transport natural gas primarily from the North Montney gas-producing region near Fort St. John, British Columbia to the LNG export facility, which is aimed at exporting natural gas to Asian markets.
The pipeline company also said it's planning to extend its existing NOVA Gas Transmission Ltd. system in northeast B.C. to connect both to the Prince Rupert Gas Transmission project and to additional North Montney gas supply from Progress and other parties. It estimates initial capital costs for the extension at about C$1 billion to C$1.5 billion.
Before Petronas closed its takeover of Progress, the two had said they were moving their LNG export project into the next phase of engineering and said a final investment decision would be made in late 2014. First LNG exports are targeted for 2018.
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