By OGJ editors
HOUSTON, July 25 -- Pacific Northern Gas Ltd. and a unit of Galveston LNG Inc. formed a 50-50 partnership to build a large-diameter gas pipeline to transport LNG landed at Kitimat, BC, to connecting pipelines in Summit Lake in northeastern British Columbia.
PNG, Vancouver, BC, operates an existing, 115 MMcfd pipeline that delivers gas to customers in west-central and northeastern British Columbia. Connected to the Duke Energy Corp. system near Summit Lake, it extends to Canada's west coast near Prince Rupert, BC, and has a total length of 587 km.
The formed partnership, Pacific Trail Pipelines, would construct a 470-km, 30-36-in. pipeline capable of transporting 1 bcfd of regasified LNG from PNG's proposed Kitimat terminal to Summit Lake. Cost of the pipeline and related facilities is $900 million to $1.2 billion.
Galveston LNG, Calgary parent of Kitimat LNG Inc., said formation of the partnership will ensure that the terminal has the necessary pipeline facilities in place to move imported LNG into North America.
Subject to start of construction of the terminal and obtaining regulatory approvals and an LNG supply, pipelaying would begin by first quarter 2008 and the project would be in service in late 2009.
