TranCanada Corporation says it is reviewing its options related to the proposed Prince Rupert Gas Transmission Project (PRGT) following the announcement that Petronas will not proceed with the LNG project the pipeline would be built for.
The 900-kilometre pipeline would transport natural gas from northeast B.C. to the Pacific NorthWest LNG project at Lelu Island off the coast of Price Rupert.
Petronas made the announcement on Tuesday, citing prolonged depressed prices and shifts in the energy industry.
“As part of our agreement with Petronas affiliate Progress Energy, following receipt of a termination notice TransCanada would be reimbursed for the full costs and carrying charges incurred to advance the PRGT project. We expect to receive this payment later in 2017,” Karl Johannson, TransCanada president of Canada and Mexico natural gas pipelines and energy, said in a statement.
“We continue to focus on our significant investments in new and existing natural gas infrastructure to meet our customers' needs…There is still a strong need for Canadian natural gas supplies to get to market, and the infrastructure we are building in Alberta and British Columbia—including recently announced multi-billion dollar investments in our NGTL system and North Montney Mainline—are designed to help move natural gas supplies to markets where they are needed.”
Johannson went on to say the company is proud of the work it has done along the PRGT route, “which has allowed us to sign 14 project agreements with First Nations and secure the key regulatory approvals and permits. We have built strong new relationships, and we look forward to continuing our strong partnerships with First Nations and communities in B.C. as we develop other natural gas assets, including our North Montney Mainline project.”