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TransCanada inks deal with Chevron-Apache on Kitimat LNG project

TransCanada Merrick Mainline Pipeline to feed Kitimat

The super major company Chevron Corporation (Chevron) and the independent Apache Corporation (Apache) signed an agreement with the Calgary-based midstream company TransCanada Corporation (TransCanada) through its wholly-owned subsidiary Nova Gas Transmission Limited (NGTL) for the construction of the Merrick Mainline Pipeline project in the perspective to feed the Kitimat liquefied natural gas (LNG) project planned by the US companies in British Columbia on the west coast of Canada.

Since Chevron took over the operatorship and EOR and Encana working interests in Kitimat LNG the project is gearing up in the race between all the LNG export terminals projects envisaged on the Canadian West Coast.

TransCanada_Merrick-Mainline-Pipeline-Project_to_Chevron-Apache-Kitiimat-LNG_Map2In a first step the joint venture Chevron – Apache secured the sourcing of the natural gas to supply Kitimat LNG.

With working interest shared 50/50 between Chevron and Apache, the both partners agreed to share operatorship responsibilities where:

 – Apache will operate the upstream part of the project

 – Chevron will take operating lead the Kitimat LNG plant

For this project, Apache will develop the shale gas reserves of one of the best field discovered so far in the Liar Basin in British Columbia (BC).

Apache is currently operating the Liard Basin shale gas field and exporting the gas through gas pipeline up to Fort Nelson.

To be phased in two LNG trains of 5 million tonnes per year (t/y) each, the Kitimat LNG project requires additional development in the Liar Basin and the expansion of the pipeline system up to the selected site of Bish Cove 650 kilometers north of Vancouver, BC.

Merrick Mainline to link NGTL System to Kitimat LNG

In the agreement signed with TransCanada, Chevron and Apache intend to use the NGTL System with its already planned expansion in the Pacific Trail Pipeline (PTP) project.

In addition to the Pacific Trail Pipeline project, TransCanada, Chevron and Apache have agreed to extend again the NGTL System with the Merrick Mainline Pipeline project.

According to the plan proposed by TransCanada, the Merrick Mainline Pipeline project will plug in the existing Groundbirch Mainline section of the NGTL System.

The Merrick Mainline Pipeline project will start from Groundbirch and will end up at the Merrick Interconnection station planned at Summit Lake, 40 kilometers north of Prince George.

Transcanada_Merrick-Mainline-Pipeline_ProjectWith 260 kilometers the Merrick Mainline Pipeline project includes:

 – Launcher facilities

 – Receiver facilities

 – Merrick Interconnect Meter Station.

Considering to invest $1.9 billion capital expenditure, TransCanada is preparing the application for submission to the National Energy Board (NEB) at the end of 2014.

 With a capacity of 1.9 billion cubic feet per day (cf/d), TransCanada is aligning the Merrick Mainline project start up with Chevron and Apache Kitimat LNG project to come on stream by 2020.

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