TransCanada to Develop $5 Billion Western Canada Pipeline

TransCanada Corporation announced today that it was selected by Progress Energy to design, build, own and operate its proposed $5 billion Prince Rupert Gas Transmission project. The pipeline will transfer gas from the North Montney gas producing region located near Fort St. John, BC to the Pacific Northwest LNG export facility in Port Edward located near Prince Rupert, BC and is expected to be completed in 2018.

“The proposed Prince Rupert Gas Transmission project will allow British Columbians, and all Canadians, to continue to benefit from the responsible development of the growing supply of valuable natural gas resources in the WCSB,” said Russ Girling, TransCanada’s President and CEO. “TransCanada has an industry leading safety record that we are extremely proud of, and we look forward to involving the skilled workforce in B.C. and across Canada to help us develop an important new component of B.C.’s growing natural gas infrastructure.”

The agreement between TransCanada and Progress is still subject to Board approval and is expected to be finalized in early 2013. Once finalized, TransCanada will start its Aboriginal and stakeholder consultation process.

“Together with our previously announced Coastal GasLink Pipeline project, this is the second major natural gas pipeline proposed to Canada’s West Coast for TransCanada - demonstrating the confidence that LNG sponsors continue to place in our ability to design, build and safely operate pipeline systems,” added Girling. “Our 60 years of pipeline experience, including 50 years in B.C., has taught us that to advance a project of this size, we must engage in open and meaningful discussions with Aboriginal communities and key stakeholder groups.  We will initiate those conversations very soon.”

TransCanada also announced today its proposal to extend its existing NOVA Gas Transmission Ltd. System to connect to the Prince Rupert Gas Transmission project and additional North Montney gas supply from Progress. This expansion will allow increased gas access to the Pacific Northwest LNG export facility. TransCanada expects this expansion to cost approximately $1 to $1.5 billion.