Spectra Energy and BG Group will each initially own a 50 per cent interest in the proposed transportation project. Spectra Energy will be responsible for construction and operation and BG Group has agreed to contract for all of the proposed capacity.
The approximately 850 km large diameter natural gas transportation system will be capable of transporting up to 4.2 Bcf/d of natural gas. The project also will connect with the Spectra Energy system at Station 2 (southwest of Fort St John), a growing natural gas hub that collects supplies from multiple areas of the Province and other supply basins in western Canada.
“We are excited to be partnering with BG Group, a recognised world leader in natural gas and more specifically, LNG,” said Spectra Energy’s President and Chief Executive Officer Greg Ebel. “This project offers BC a unique opportunity to access new markets, strengthen its energy infrastructure, engage stakeholders in economic growth and job creation, and ultimately secure the Province’s position as a competitive energy leader.
“We are ideally positioned to create further value for our investors by leveraging surplus BC natural gas supplies and facilitating its export to high-demand markets in Asia. This, in turn, will provide multiple opportunities for further investment in our gathering and processing facilities in the province,” Mr Ebel added.Article continues below…
Working together with affected stakeholders and based on preliminary assessments of environmental, historical, cultural, and constructability factors, early conceptual routes have been developed. Spectra Energy and BG Group will continue engaging with interested and affected stakeholders, including Aboriginal and local communities, environmental organisations, and regulatory agencies, to further refine the project route.
In addition, the companies will spend the next several years closely conferring with stakeholders and working through the permitting process for the proposed transportation system. This work will include filing a project application with the BC Environmental Assessment Office. Based on the results of these efforts, project construction is currently expected to commence mid-decade, with service starting by the end of the decade.
As part of this commitment to transparently communicate and foster relationships in the Province, Spectra Energy also announced ‘Energy for BC’. The new outreach initiative is designed to engage with stakeholders on the jobs, revenues, and environmental benefits that natural gas can create in British Columbia.