TransCanada plans to build its US$1.9 billion Merrick Mainline Pipeline project, which will run about 161 miles through British Columbia, Canada, and end at the Kitimat LNG Terminal.
The decision was made following news that Transcanada’s subsidiary Nova Gas Transmission signed agreements with Chevron Canada and Apache Canada for approximately 1.9 billion cubic feet per day of firm natural gas transportation services, the Canadian company said in a statement.
The Merrick Mainline Pipeline will transport natural gas sourced through the NGTL System to the inlet of CVX/APA’s proposed Pacific Trail Pipeline. The proposed project will be an extension from the existing Groundbirch Mainline section of the NGTL System beginning near Dawson Creek, B.C. to its end point near the community of Summit Lake, B.C.
TransCanada is continuing development work on the project, including field studies, engineering and design work, and pipeline routing, to support applications for regulatory approvals and finalize project requirements. Construction of the Merrick Mainline is dependent on regulatory approval and a positive final investment decision for the Kitimat LNG project.
Transcanada plans to file an application with the National Energy Board in the fourth quarter of 2014. If approved, the Merrick Mainline would begin service in the first quarter of 2020.