National Energy Board recommends approval of North Montney Mainline Project variance

TransCanada Corporation recently announced that the National Energy Board (NEB) recommended the federal government approve a variance to the previously issued North Montney Mainline Project certificate, which would allow construction to begin on the proposed project.

The North Montney Mainline Project would allow construction to begin on the proposed $1.4 billion natural gas project in northeast British Columbia.

NOVA Gas Transmission Ltd. (NGTL), a wholly-owned subsidiary of TransCanada, is advancing the project as an expansion of the existing NGTL System. It has obtained 20-year commercial contracts with 11 shippers to transport approximately 1.5 billion cubic feet of natural gas per day.

“We are pleased with the NEB’s decision on the North Montney Mainline Project,” TransCanada President and CEO Russ Girling said. “These facilities are critical to the timely and economic development of the tremendous natural gas resource in the North Montney play. Since 2011, the project has undergone thorough consultation, engagement, and rigorous regulatory assessment. Through this process, we have demonstrated the importance of this critical piece of energy infrastructure to natural gas producers and downstream markets throughout Canada and the United States.”

The project initially received approval in 2015, contingent on a positive final investment decision on the then-proposed Pacific Northwest LNG liquefaction project.

In March 2017, NGTL began to seek approval to remove those conditions and restructured the commercial project arrangements and the associated facilities to accommodate a delay or a cancellation of the Pacific Northwest LNG project, as occurred in July 2017.

The NED also provided guidance on the tolling principles to be applied to the project, which NGTL will work with its shippers to address.

The project consists of approximately 128 miles of 42-inch pipeline, compression, and associated metering facilities. Subject to timely federal approval, construction on the project is expected to begin by the third quarter of 2018 with an expected in-service date of mid-2019.