Stockwatch – TransCanada’s Merrick Mainline Pipeline will run 260 kilometres from Dawson Creek to Summit Lake.
Canadian energy infrastructure company TransCanada Corporation (TSE:TRP, Mkt cap 35.73B, P/E 21.30, Div/yield 0.48/3.80, EPS 2.37, Shares 707.71M) plans to invest $1.9 billion in the construction of a pipeline that will transport fuel to a liquefied natural gas plant near Kitimat, British Columbia.
The gas facility is co-owned by the local units of US energy majors Chevron Corp and Apache Corp, which have signed a deal with TransCanada to deliver around 1.9 billion cubic feet of gas per day through the pipeline.
TransCanada’s Merrick Mainline Pipeline will run 260 kilometres from Dawson Creek to Summit Lake, where it will connect with Kitimat LNG’s proposed Pacific Trail Pipeline. Pacific Trail will transport gas the rest of the way to the coast, where the gas will be liquefied and sent by tankers to customers abroad.
The Merrick Mainline Pipeline is expected to go on stream in the first quarter of 2020. Initial work for the pipeline is proceeding well and later this year the company will lodge a request with the National Energy Board to get approval for building and operating the project, CEO Russ Girling said in a statement.
The pipeline will also need to undergo an environmental assessment before it gets regulatory clearance.
Work on the Merrick pipeline is in its early stages but construction will go ahead only if it gets regulatory go-ahead and if Chevron and Apache decide to proceed with the Kitimat LNG project.
TransCanada currently has four gas projects under development in the region, representing a total investment of $12.6 billion.
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