Supply preparations are accelerating for LNG deliveries overseas from British Columbia (BC) after TC Energy Corp. secured approval for a pipeline connection.
With exploration and production support, the Calgary-based midstream giant also has proposed a special export toll for liquefied natural gas.
The Canada Energy Regulator (CER) finalized TC’s Willow Valley Interconnect, which would link Nova Gas Transmission Ltd. (NGTL) and the Coastal GasLink (CGL) conduit. Willow Valley, forecast to cost around $5.3 million, would traverse the Montney Shale, with supply destined for the Shell plc-led LNG Canada terminal nearing completion on the BC coast.
CER also was asked to approve a “firm transportation-linked export service,” devised in consultation by NGTL with its shippers. The service was formally accepted without opposition, the TC subsidiary noted. The plan would reduce charges for gas flows to single exits from NGTL’s 15,000-mile system to consumers across Canada and the United States.
Willow Valley has sold gas traffic contracts for 481 MMcf/d to date, according to CER filings.
CGL is nearing completion of its 48-inch diameter pipeline, which could carry up to 5 Bcf/d. The large system is designed to grow as LNG Canada begins operations. More supply is forecast once the approved Cedar LNG export project is completed on the BC coast.
Willow Valley, scheduled for completion in 2024, is the second link into CGL approved for BC gas supply collection services.
Enbridge Inc.’s Westcoast subsidiary previously obtained CER approval for Silverstar, a $19 million connection, with capacity to relay up to 1.2 Bcf/d from the Montney to CGL. Westcoast secured the connection after CER rejected an NGTL bid to lead gas deliveries for overseas exports from LNG Canada with a discount toll to a single partner.
