Pacific Trail Pipelines LP (PTP) is seeking shippers for its proposed C$1.2 billion, 463-kilometer (288-mile) Kitimat to Summit Lake Looping Project (KSL Project). Capacity takers would eventually be able to transport Canadian gas to the proposed Kitimat LNG Inc. terminal for liquefaction and shipment to more lucrative markets in the Pacific Rim.

The KSL Project would begin at an interconnect with Spectra Energy Transmission near Summit Lake, BC, and deliver gas to an interconnect with the proposed liquefied natural gas (LNG) liquefaction terminal at Bish Cove, BC. The project has been under development since 2005. In June PTP was granted an environmental assessment certificate for the project by British Columbia regulators. PTP said it expects to receive approvals under the Canadian Environmental Assessment Act before the end of the first quarter of 2009.

“The KSL Project provides a compelling opportunity for energy companies interested in taking advantage of the natural gas price gap between the lower prices in North America and the higher prices in Asia,” said PTP CEO Roy Dyce.

Just days ago Kitimat offered up capacity at the LNG terminal (see Daily GPI, Dec. 1). In September Calgary-based Kitimat cited shifting global gas supply and demand fundamentals as reason to revise its plans for an LNG import terminal to instead construct an export terminal at Bish Cove (see Daily GPI, Sept. 23).

Rising natural gas demand in Asia and recent increases in supply in North America — including in the U.S., Canada’s traditional export market — have led to significantly higher gas prices in Asia than North America. The differential has spawned interest in one-off shipments of LNG previously imported to the U.S. Gulf Coast to global markets (see Daily GPI, Oct. 24; Aug. 18).

Assuming sufficient interest in the pipeline project, PTP will seek the additional regulatory approvals necessary, which include those from the British Columbia Utilities Commission and the British Columbia Oil and Gas Commission.

The deadline to respond to the pipeline open season is Dec. 22. More information on the KSL Project is available at Information on the Kitimat LNG terminal project is available at

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