Canada: Former PNW LNG feeder pipeline approved

Canada’s National Energy Board (NEB) approved a variance to the previously issued North Montney Mainline project certificate requested by TransCanada’s unit NOVA Gas Transmission.

The approval allows the construction to start on the proposed $1.4 billion natural gas project in northeast British Columbia.

The project is being advanced as an expansion of the existing NGTL System and is backed by 20-year commercial contracts with 11 shippers to transport approximately 1.5 billion cubic feet (1.6 million gigajoules) of natural gas per day.

The project was originally approved in 2015, subject to conditions making construction contingent on a positive final investment decision on the then-proposed Pacific Northwest LNG liquefaction project.

In March 2017, NGTL sought approval to remove those conditions and had restructured the commercial project arrangements and the associated facilities to accommodate a delay or, as occurred in July 2017, a cancellation of the Pacific Northwest LNG project.

The project consists of approximately 206 kilometers (128 miles) of 42-inch pipeline, compression and associated metering facilities.

Subject to timely federal approval, construction is expected to start by the third quarter of 2018, with an anticipated in-service date of mid-2019.

The NEB also provided guidance on the tolling principles to be applied to the project. NGTL will work with its shippers to address these requirements.

This project represents a significant component of NGTL’s $7.2 billion multi-year infrastructure expansion program that will increase transportation capacity for Western Canada producers and provide downstream markets increased access to natural gas.