TransCanada's Horn River gas pipeline receives NEB approval

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Feb. 7 -- Canada’s National Energy Board approved TransCanada Corp.’s Horn River natural gas pipeline project. The pipeline will connect British Columbia shale gas supplies to TransCanada’s Alberta System. TransCanada anticipates bringing Horn River into service second-quarter 2012.

The $310 million, 155-km Horn River pipeline consists of a new 36-in. OD pipeline and acquisition of an existing 24-in. OD pipeline. The project will provide firm service for Alberta System gas transportation contracts exceeding 630 MMcfd by 2014.

TransCanada expects British Columbia shale gas supplies to climb to more than 5 bcfd by the end of the decade and the Horn River pipeline is the company's second major pipeline connecting its Alberta System to these supplies. The first extension of the Alberta System into British Columbia was the Groundbirch pipeline, which came into service in December 2010. Horn River and Groundbirch shippers have committed to Alberta System transportation contracts reaching 1.9 bcfd by 2014.

TransCanada plans to bring its Keystone Phase 2 crude pipeline and Guadalajara natural gas pipeline in Mexico into service during 2011. Keystone Cushing (Phase 2) extends 36-in. OD pipe from Steele City, Neb., to Cushing, Okla. TransCanada commenced commercial operation on the 435,000 b/d Keystone Phase 1, June 30, 2010. Phase 2 will boost capacity to 591,000 b/d.

The Guadalajara Pipeline will move gas from an LNG terminal under construction near Manzanillo on Mexico's Pacific Coast to both Guadalajara and the CFE CT Manzanillo power plant. The pipeline’s first segment consists of about 6 km of 24-in. OD pipeline capable of transporting 500 MMcfd to the power plant. The second segment will consist of a 30-in. OD pipeline extending roughly 295 km between the Manzanillo LNG terminal and an interconnection with Pemex Gas y Petroquimica Basica. This segment will be bidirectional and capable of transporting as much as 320 MMcfd of gas.

Contact Christopher E. Smith at chriss@ogjonline.com.

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