Shell Canada Limited (Shell) and its partners have selected TransCanada Corporation to design, build, own and operate the proposed Coastal GasLink project, an estimated $4-billion pipeline that will transport natural gas from the Montney gas-producing region near Dawson Creek, British Columbia (BC) to the recently-announced LNG Canada liquefied natural gas export facility near Kitimat, BC.
The potential Coastal GasLink pipeline project will run approximately 700 kilometers (435 miles) and have an initial capacity in excess of 1.7 billion cubic feet of gas per day. Construction is estimated to take 2–3 years.
The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited. Shell and TransCanada are working toward the execution of definitive agreements on the Coastal GasLink project.
TransCanada currently has approximately 24,000 kilometers (14,912 miles) of pipelines in operation in Western Canada including 240 kilometers (149 miles) of pipelines in service in northeast BC, with another 125 kilometers (78 miles) of proposed additions either already having received regulatory approval or currently undergoing regulatory review. These pipelines form an integral and growing part of TransCanada’s NOVA Gas Transmission Ltd. (NGTL) System. The company also owns other natural gas pipelines that have been operating in BC for more than 50 years as part of its Foothills pipeline system.
In addition to the transportation of BC natural gas to the West Coast, Coastal GasLink will provide options for shippers to access gas supplies through an interconnection with the NGTL System and the liquid NIT trading hub operated by TransCanada. A proposed contractual extension of TransCanada’s NGTL System using capacity on the Coastal GasLink pipeline, to a point near the community of Vanderhoof, BC, will allow NGTL to offer delivery service to its shippers interested in gas transmission service to interconnecting natural gas pipelines serving the West Coast. NGTL expects to elicit interest in and commitments for such service through an open season process in late 2012.
Applications for required regulatory approvals are expected to be made through applicable BC provincial and Canadian federal processes. A specific route has not yet been selected. The final pipeline route will take into consideration Aboriginal and stakeholder input, the environment, archaeological and cultural values, land use compatibility, safety, constructability and economics, TransCanada said.
Estimated in-service date is toward the end of the decade, subject to regulatory and corporate approvals.