North Montney Mainline Project gets NEB approval

The proposed project will provide substantial new capacity on the NGTL System to meet the transportation requirements associated with rapidly increasing development of natural gas resources in the Montney supply basin in northeastern British Columbia.

The project will consist of two 42 inch diameter pipeline sections, Aitken Creek and Kahta, totalling approximately 301 km in length, and associated metering facilities, valve sites, and compression facilities.

The project will also include an interconnection with TransCanada’s proposed Prince Rupert Gas Transmission Project to provide natural gas supply to the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility near Prince Rupert, British Columbia.

Subject to certain conditions, NGTL expects to have the Aitken Creek Section in service in 2016, and the Kahta Section in service in 2017.

The initial capacity of the North Montney Mainline will allow the shipment of approximately 2.4 bcf/d of natural gas. Progress Energy Canada, a subsidiary of the Malaysian integrated energy company PETRONAS, has contracted for 2.0 bcf/d of firm receipt service and 2.1 bcf/d of firm delivery service. Other producers have signed contracts for 78 MMcf/d, and NGTL is also continuing discussions with other parties that have expressed interest in obtaining transportation services that would utilise the North Montney Mainline facilities.

The project will connect Montney and other Western Canadian Sedimentary Basin supply to both existing and new natural gas markets, notably emerging markets for LNG, and will generate long-term economic opportunities for British Columbia and its northern communities.

The NEB also approved the applied-for rolled-in tolling design for the project costs during a transition period, subject to certain conditions, which TransCanada is reviewing. Following the transition period, TransCanada will have the option of applying to the Board for a revised tolling methodology, or will have the option of implementing stand-alone tolling on the project. TransCanada will engage its shippers to determine an appropriate approach that best meets market requirements.

The full NEB report is available for viewing here.

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