The National Energy Board recommended that the Canadian government allow TransCanada Corp. to start construction on its C$1.4 billion North Montney Mainline natural gas pipeline project through the approval of a variance to the project certificate.
The 128-mile pipeline project's original approval in 2015 included conditions that made construction dependent on a positive final investment decision on the Pacific NorthWest LNG export project, which was scrapped in July 2017 due to challenging market conditions and mounting opposition. TransCanada in March 2017 applied for a variance that would remove the conditions and restructure the project arrangements to take into account a delay or cancellation of the Pacific NorthWest project.
"We are pleased with the NEB's decision on the North Montney Mainline project. These facilities are critical to the timely and economic development of the tremendous natural gas resource in the North Montney play," President and CEO Russell Girling said in a May 24 news release.
The North Montney project in northeast British Columbia is part of TransCanada subsidiary NOVA Gas Transmission Ltd.'s C$7.2 billion expansion of its existing system. It is designed to deliver about 1.5 Bcf/d of gas from the Montney shale play and is underpinned by 20-year commercial contracts with 11 shippers.
If TransCanada receives federal approval, construction may begin by the third quarter, working toward an in-service date of mid-2019.
