Spectra Energy has signed a Project Development Agreement with BG Group plc to jointly develop a new natural gas transportation system from northeast B.C. to serve BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert, on the province’s northwest coast. Spectra Energy and BG Group will each initially own a 50% interest in the proposed transportation project. Spectra Energy will be responsible for construction and operation and BG Group has agreed to contract for all of the proposed capacity.
The approximately 850-km (525 mile), large diameter natural gas transportation system will begin in northeast B.C. and end at BG Group’s potential LNG export facility in Prince Rupert. The new transportation system will be capable of transporting up to 4.2 Bcf/d of natural gas. The project also will connect with the Spectra Energy system at Station 2 (southwest of Fort St. John), a growing natural gas hub that collects supply from multiple areas of the province and other supply basins in Western Canada.
Greg Ebel, president and chief executive officer, Spectra Energy said, “This project offers B.C. a unique opportunity to access new markets, strengthen its energy infrastructure, engage stakeholders in economic growth and job creation, and ultimately secure the province’s position as a competitive energy leader.”
The companies plan to spend the next several years closely conferring with stakeholders and working through the permitting process for the proposed transportation system. This work will include filing a project application with the B.C. Environmental Assessment Office. Based on the results of these efforts, project construction is currently expected to commence mid-decade, with service starting by the end of the decade.