Spectra, BG report British Columbia gas export pipeline

Spectra Energy Corp. has signed an agreement with BG Group PLC to jointly develop a new large-diameter 525-mile natural gas pipeline from northeast British Columbia to supply BG’s potential LNG export facility in Prince Rupert, BC, on the province’s northwest coast.

Spectra and BG will each initially own 50% of the proposed transportation project. Spectra will be responsible for construction and operation and BG has agreed to contract for all 4.2 bcfd of proposed capacity.

The project also will connect with the Spectra’s existing system at Station 2 (southwest of Fort St. John, BC), a natural gas hub that collects supply from multiple areas of the province and other basins in Western Canada.

Pending regulatory approval, Spectra and BG expect to begin building the pipeline mid-decade and complete it by 2019.

The companies have developed early conceptual routes and will continue to work with Aboriginal and local communities, environmental organizations, and regulatory agencies, to further refine the project route, Spectra said.

Petronas Carigali Canada Ltd also plans to build an LNG export terminal in Prince Rupert (OGJ Online, June 28, 2012).

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

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