TEX reported that UK based BG Group will take part in gas infrastructure development in Canada. On September 10th 2012, BG Group announced to have signed a Project Development Agreement with the United States Spectra Energy Corporation, which has been engaged in gas infrastructure development mainly in British Columbia Province, Canada, in order to jointly build a pipeline to send feedstock gas to the LNG export terminal which BG Group has planned for.

BG and Spectra will each initially have a 50% interest in the proposed transportation project. The proposed approximately 850 kilometers long pipeline would run from gas fields in the British Columbia province's northeast to the Port of Prince Rupert on the northwest coast of the province. The large diameter gas transmission pipeline, that will be constructed, would carry 4.2 billion cubic feet per day or about 30.66 million tonnes per year of LNG.

Spectra will be in charge of construction and operations of the pipeline, while BG is expected to consume entire quantity of gas that will be sent through the pipeline to the planned LNG export terminal.

The detailed route, along which the pipeline will be installed, is still under investigation. It is estimated to take about five years before the construction begins. Also, BG seems not to have fixed the production scale at the planned LNG terminal. Only, in view of the pipeline's gas transmission capacity, it is considered that BG are planning to construct substantially large-scaled project, taking into account the future expansion.

Incidentally, Malaysia's Petronas has also proceeded with LNG production and export project at the Port of Price Rupert. After acquisition of Canada's Progress Energy Resources Corporation, Petronas obtained three shale gas fields in the province's northeast with a view to exporting LNG. It is anticipated that the feasibility study for the feedstock gas transmission pipeline will be completed in September 2012.

Source - TEX Report Limited

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