Spectra Energy Wednesday proposed building a new natural gas gathering pipeline to connect the growing exploration in the Peace River area of northeastern British Columbia. The proposed in-service date is 3Q2009.
The South Peace Pipeline would form an extension to Spectra’s existing raw gas gathering system in the Fort St. John resource area of northeast British Columbia to an area south of Spectra’s McMahon gas processing plant in Taylor, BC. Gas reserves connected to the South Peace Pipeline would be transported for processing at the McMahon plant.
The 85-kilometer pipeline would have a transportation capacity of more than 220 MMcf/d. Construction costs were estimated at C$100 million (US$90 million).
“We are encouraged by the development potential of this emerging natural gas production area in northeast BC,” said Gary Weilinger, president of Spectra’s BC Pipeline and BC Field Services divisions. “We believe the production area south of the Peace River will complement our existing infrastructure already in place, providing highly reliable market access to new customers in the area, and ultimately increasing the utilization of our McMahon gas plant and surrounding facilities.”
Spectra said discussions are continuing with potential customers to solidify contractual arrangements. By the time it files a formal application with the National Energy Board — expected in the first three months of 2008 — Spectra said it expects to have the pipeline capacity 100% contracted and commercial agreements in place. For information contact Troy Adams at (403) 699-1751.
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