Merrick Mainline project a key link in proposed natural gas export
Construction is set to begin on the project pending regulatory approval and a positive (FID) for Kitimat's LNG project
1 of 3The Merrick Mainline carries a $1.9 billion price tag, and underpins the development of a major extension of TransCanada’s NGTL System. — Photo
1 of 3The Merrick Mainline carries a $1.9 billion price tag, and underpins the development of a major extension of TransCanada’s NGTL System. — Photo courtesy of TransCanada Corporation
2 of 3Construction is set to begin on the Merrick Mainline project pending regulatory approval and a positive Final Investment Decision (FID) for Kitimat’s LNG project — Photo courtesy of TransCanada Corporation
3 of 3TransCanada has initiated discussion about the Merrick Mainline with Aboriginal groups, landowners and affected communities and anticipates that process will be ongoing. — Photo courtesy of TransCanada Corporation
NOVA Gas Transmission Ltd. (NGTL), subsidiary of TransCanada Corporation, has signed an agreement with Chevron Canada and an Apache Canada Ltd. partnership to move ahead on the Merrick Mainline Pipeline project.
The 260-kilometre, 48-inch-diameter pipeline will transmit firm natural gas between the west end of the Groundbirch Mainline, 35 kilometres west of Dawson Creek, and Summit Lake, about 42 kilometres north of Prince George, creating a connection with the proposed Pacific Trail Pipeline, which will terminate at the Kitimat LNG Terminal at Bish Cove.
Under the project’s current commercial agreements, volumes are expected to ramp up to aggregate volume of approximately 1.9 Bcf/d between 2020 and 2022. NGTL is also discussing potential deals with other parties to transport natural gas on the Merrick Mainline.
The project carries a $1.9 billion price tag, and underpins the development of a major extension of TransCanada’s NGTL system.
“The Merrick Mainline pipeline project will be designed, constructed and operated utilizing TransCanada's extensive experience in developing safe and reliable energy infrastructure,” said Russ Girling, TransCanada's president and chief executive officer. “We now have four major natural gas pipeline projects under development in the region, totalling $12.6 billion in investment, and we are committed to ensuring they are all built responsibly and with minimal environmental impact.”
TransCanada has initiated discussion with aboriginal groups, landowners and affected communities, and anticipates that process will be ongoing.
“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.”
Construction is set to begin on the project pending regulatory approval and a positive Final Investment Decision (FID) for Kitimat’s LNG project.
Although B.C. has as many as 14 LNG projects on the table, only four are considered likely to come to fruition.
Pacific NorthWest LNG, owned by Malaysia’s Petronas; LNG Canada (a joint venture led by Shell Canada Energy); and Douglas Channel LNG, led by the Haisla First Nation, Golar LNG and Texan energy fund LNG Partners have all established buyers for their product.
Kitimat LNG has yet to announce its buyers or whether it has any; however, unlike its competition, it has achieved every major necessary federal and provincial environmental permit.
In 2011, Kitimat LNG was the first LNG project in B.C. to receive an export licence from the National Energy Board and the company currently has 15 of 16 benefits agreements in place with First Nations.
