Canadian energy infrastructure group TransCanada has filed a variance application with Canada's energy regulator National Energy Board to proceed with construction of the North Montney Mainline (NMML) project in north-east British Columbia. The company has already secured the required primary federal and provincial approvals to construct the NMML project, subject to conditions that included the requirement for a positive final investment decision on the proposed Pacific Northwest LNG (PNW) gas liquefaction project.
The project will consist of two sections, Aitken Creek and Kahta, totalling around 301 km, which will connect with the north end of the existing Groundbirch Mainline (Saturn section). It will also include an interconnection with TransCanada's proposed Prince Rupert Gas Transmission Project to provide natural gas supply to the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility near Prince Rupert. The North Montney Mainline project will have an initial capacity of 2.4 bcf/d (68 mcm/d or nearly 25 bcm/year), with 20-year commercial contracts secured with 11 shippers for approximately 1.5 bcf/d (42 mcm/d or 15.5 bcm/year) of firm service.
The requested variance would allow TransCanada to move forward with construction of the majority of the NMML project, at an estimated cost of approximately C$1.4bn (US$1bn), prior to a final investment decision on the PNW LNG project. Subject to regulatory approvals, TransCanada plans to begin construction in the first half of 2018, with commissioning beginning in April 2019.