NGTL to build Merrick pipeline supplying Kitimat LNG

Nova Gas Transmission Ltd. (NGTL), a TransCanada Corp. wholly owned subsidiary, will build the Merrick Mainline pipeline to supply natural gas to future liquefaction plants on the British Columbia coast. TransCanada signed agreements with Chevron Canada Ltd. and an Apache Canada Ltd. wholly owned and controlled partnership (APA) for 1.9 bcfd of firm gas transportation to underpin development the extension of its NGTL system.

Merrick will transport gas sourced through the NGTL system to the inlet of Chevron and Apache’s proposed Pacific Trail Pipeline, delivering to the Kitimat LNG terminal at Bish Cove near Kitimat, BC. Chevron acquired its 50% interest in Kitimat, LNG, Pacific Trail, and 644,000 acres in the Horn River and Laird basins last year.

The proposed 161-mile, 48-in. OD pipeline will be an extension from the existing Groundbirch Mainline section of the NGTL system running from near Dawson Creek, BC, to near Summit Lake, BC. Progress Energy Canada Ltd. last year signed a transportation agreement with NGTL underpinning development of its North Montney Mainline expansion project, also originating at Groundbirch (OGJ Online, Aug. 7, 2013).

TransCanada is conducting field studies, community engagement, engineering and design work, and pipeline route evaluation to support applications for regulatory approvals and finalize project requirements. The company anticipates filing with Canada’s National Energy Board (NEB) in the fourth quarter. Pending approval, TransCanada expects Merrick to enter service first-quarter 2020.

Under the commercial arrangements with Chevron and Apache, delivery volumes will ramp up between 2020 and 2022 to the aggregate 1.9 bcfd. NGTL is also in discussions with other parties that have expressed interest in transporting gas on Merrick. Merrick will cost $1.9 billion, part of TransCanada’s declared $38 billion capital growth plan between now and 2020.

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