Merrill Lynch Commodities (MLC) has extended its option to contract for 75 MMcf/d of gas transportation service on the existing Pacific Northern Gas (PNG)’s Western Pipeline System.
The PNG Western Pipeline System connects with the Spectra Energy pipeline system near Summit Lake, British Columbia and extends 587 km to the west coast of British Columbia at Prince Rupert.
A $US1 million non-refundable fee was paid by MLC to extend the option to contract for firm gas transportation capacity, which was originally granted by PNG in March 2009.
If MLC does exercise its option, the PNG Western Pipeline System will near full capacity utilisation.