TransCanada PipeLines has announced an agreement with the
Government of the Northwest Territories (GNWT) to build a direct
connection between the rapidly developing reserves in the southern
part of the territories and the TransCanada mainline.
The two ended a series of discussions with the announcement they
would work together to encourage a cost effective, competitive
natural gas transmission infrastructure in the area and eventually
in the Mackenzie Delta as well. Originally, producers in the
Northwest Territories had sought connections with TransCanada's
Alberta intra-provincial line, Nova Gas Transmission. The
territorial government filed an appeal in May with the National
Energy Board (NEB) asking the board to take jurisdiction over Nova
and force it to connect the new drilling areas with long distance
lines and markets. Wednesday's agreement circumvents the
Nova/jurisdictional wrangle, and the GNWT has said it will withdraw
its appeal to the NEB.
The reserves to be brought on line include 1 Tcf proven and
another 3 to 5 Tcf potential. A single well recently brought in in
the Liard area was tested at 45 MMcf/d with an estimated 250 Bcf of
marketable gas. The companies expect to drill several additional
development and exploration wells with production potential of
50-100 MMcf/d by next summer.
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