Progress Energy Canada Ltd. (Progress Energy), Pacific NorthWest LNG Ltd. (PNW LNG) and Petroliam Nasional Berhad (PETRONAS) have signed transaction agreements whereby Indian Oil Corporation Ltd., through its affiliates, will acquire a 10 per cent interest in Progress Energy’s LNG-destined natural gas reserves in northeast British Columbia and in the proposed PNW LNG export facility on Canada’s West Coast.
As part of the transaction, Indian Oil Corporation Ltd. has also agreed to offtake 1.2 million tons of liquefied natural gas (LNG) per annum, which represents 10 per cent of the LNG facility’s production, for a minimum period of 20 years.
To connect the partners’ natural gas reserves in northeast British Columbia with the LNG plant on the West Coast, TransCanada Corporation is advancing plans to build two pipelines — the North Montney Mainline project into the natural gas fields as well as the Prince Rupert Gas Transmission (PRGT) pipeline to the coast. The 305-kilometre North Montney Mainline application has been made to the NEB.
This regional pipeline would run from the Groundbirch area, about 35 kilometers southwest of Fort St. John, B.C., north to gather natural gas through the NMJV operations along the Alaska Highway. PRGT would then transport the natural gas to the Prince Rupert area along a 900-kilometer route that is under consideration and selection with input from First Nations and community stakeholders.
“Each of these major investments in British Columbia underscores the globally attractive and competitive opportunities for Canadian natural gas in the Pacific Rim.”
— Michael Culbert, President & CEO of Progress Energy, of Calgary