TransCanada Corp. said it has received a contract from Shell Canada Ltd. to build and operate a pipeline expected to cost $3.85 billion (4 billion Canadian dollars) that will transport natural gas to a planned liquefied natural gas export facility near Kitimat, British Columbia.
Last month, Shell Canada parent Royal Dutch Shell PLC, Mitsubishi Corp., Korea Gas Corp. and PetroChina Co. formed a joint venture - led by Shell - to pipe gas to Canada's Pacific Coast, where the gas would be deep-chilled and exported by sea to Asia.
TransCanada said its pipeline, the proposed Coastal GasLink project, will transport natural gas from the Montney gas-producing region near Dawson Creek, British Columbia to the LNG Canada facility.
The Calgary-based pipeline company said the proposed pipeline will have an initial capacity of about 1.7 billion cubic feet of gas a day and has an estimated in-service date near the end of the decade, subject to regulatory and corporate approvals.
Monday, Royal Dutch Shell Chief Executive Peter Voser estimated the cost of the first phase of the planned LNG Canada facility at about $12 billion.