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Shell and partners select TransCanada to develop ~$4B natural gas pipeline to Canada’s West Coast

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.



This is very good news for Canada. NG sells at much higher price in Asia than in USA/Canada. It will contribute positively to Canada's improved trade balance with Asia.

A similar project to transport crude oil extracted from tar sands in Alberta would also be equally beneficial if not more so. That project could be announced with 12 months or so.


Another very good news for Canada today. Enbridge received approval from the Native people for construction of a $5.5B, 1170 Km, 525,000 + barrels/day dual pipeline from Bruderheim Alta to Kitimat BC. This project should be completed by 2015/2016 and will boost crude oil export to Asia for the next 50 years or so. The 15% higher price for Oil in Asia will pay for the full cost of the project in about 700 days or less than 2 years.

Secondly, the sale of Oil for $52 M/day or $19+B/year to Asia will contribute to further reduce our trade deficits with Asia for the next 50+ years.


Good news for rich corporations, bad news for local environoments and global climatic stability. you have got to be joking HarveyD. The Canadian national government and tar sands oil development are an abomination.

Nick Lyons

Kind of a good news/bad news item.


critta...we don't have too many other choices left to pay for our huge growing imports from Asia and for food products from tropical countries.

Since most of our manufacturing facilities are closing down (much like in USA and EU) we will have to export more Oil, NG, SG, Grains, Potash, Iron, Aluminium, Gold, Diamonds, Copper, Rare Earths, Silver, Uranium, Lithium, Electricity, Wood products, Paper, Aircraft, Locomotives, Buses, soft ware, entertainment etc.

Exporting cars, light trucks, electronic gadgets, batteries, clothing, electrical components, appliances, ships, arms, etc will be out of the question soon. We are no longer competitive in those fields.

Our labor force will have to be retrained and re-deployed at an accelerated rate during the next 20 years or so.


critta...for OIL-NG-SG we have to diversify our exports and get a higher price (+15% to +200%) than we actually do from a sole buyer south of the border.

As soon as those new Trans-Mountain Pipelines are in operation, our South of the Border customers will have to pay much more for our OIL, NG and SG.

Canada will benefit both ways, i.e. higher volume and much higher prices.

If we are smart enough, we could do as the OPEC countries do and set higher prices or impose higher export fees etc. Non-renewable fuels should be sold at very high price while they last.

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