TransCanada inks Chevron, Apache LNG deals

LNG deals: The proposed pipeline extension would end at Kitimat LNG

TransCanada is pushing further ahead with a proposed C$1.9 billion (US$1.74 billion) gas pipeline expansion plan after inking deals with Chevron and Apache.

The Canadian midstream giant signed agreements with the US supermajor and independent, respectively, for the transportation of approximately 1.9 billion cubic feet per day of natural gas.

The deals underpin the planned expansion of the company’s NGTL System, namely the proposed Merrick Mainline Pipeline Project that will take liquefied natural gas in British Columbia (BC) to Kitimat LNG on the west coast.

The proposed project will be an extension from the existing Groundbirch Mainline section of the NGTL System beginning near Dawson Creek to its end point near the community of Summit Lake, both in BC.

“TransCanada is continuing to advance its development work on the project, including field studies, engineering and design work, and pipeline routing, to support applications for regulatory approvals and finalise project requirements,” it said.

“Construction of the Merrick Mainline is dependent on regulatory approval and a positive final investment decision for the Kitimat LNG project.”

TransCanada's chief executive officer Russ Girling said: "The initial work for the project is proceeding well, and we anticipate filing an application with the National Energy Board in the fourth quarter of 2014 for approvals to build and operate the project.

“Subject to the necessary approvals, we expect the Merrick Mainline to begin service in the first quarter of 2020."

The planned pipeline will be some 260 kilometres long and 48 inches in diameter. Delivery volumes are set to ramp up between 2020 and 2022 to the 1.9 billion cfd figure.

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