... TransCanada to Embark on $1.9 Billion Merrick Gas Pipeline

TransCanada to Embark on $1.9 Billion Merrick Pipeline

A subsidiary of TransCanada Corp. has signed agreements with Chevron Canada Ltd. and Apache Canada Ltd. to build a 161-mile pipeline to facilitate natural gas export from British Columbia.

The agreement announced June 4 comprises TransCanada’s plan to extend its NOVA Gas Transmission Ltd. (NGTL) system by adding 1.9 billion cubic feet per day (Bcf/d) of firm natural gas transportation services to underpin the development of the project.

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The proposed Merrick Mainline Pipeline Project will be a significant new link in British Columbia’s emerging liquefied natural gas (LNG) export market. The pipeline will transport natural gas sourced through the NGTL System to the inlet of Chevron and Apache’s proposed Pacific Trail Pipeline (PTP) that will terminate at the Kitimat LNG Terminal at Bish Cove near Kitimat, British Columbia. The proposed project will be an extension from the existing Groundbirch Mainline section of the NGTL System beginning near Dawson Creek, British Columbia, to its end point near the community of Summit Lake, British Columbia. The $1.9 billion (CAD) project will consist of approximately 161 miles of 48-in. diameter pipe.

“We now have four major natural gas pipeline projects under development in the region totaling $12.6 billion in investment, and we are committed to ensuring they are all built responsibly and with minimal environmental impact,” said Russ Girling, TransCanada’s president and CEO.

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 finalize project requirements. Aboriginal, landowner and community engagement and consultation activities for the Merrick Mainline Pipeline Project have started and will be ongoing through the life of the project. Construction of the Merrick Mainline is dependent on regulatory approval and a positive final investment decision for the Kitimat LNG project.

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

The Merrick Mainline Pipeline Project is a key component of TransCanada’s capital growth plan, which includes $38 billion in commercially secured projects expected to be completed by the end of the decade, according to a company statement. These projects are supported by strong market fundamentals and underpinned by long-term contracts or the revenue stability of cost-of-service regulation.

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