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Gas pipeline proposed for British Columbia

Sept. 13, 2012 at 8:02 AM

VANCOUVER, British Columbia, Sept. 13 (UPI) -- A Houston energy company announced it signed a preliminary deal to develop plans for a natural gas pipeline to service LNG export facilities in western Canada.

Spectra Energy Corp., which has headquarters in Texas, announced it signed a development agreement with BG Group to build a gas transit system for liquefied natural gas export facilities planned for British Columbia.

"This project offers B.C. 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," Greg Ebel, president and chief executive officer at Spectra Energy, said in a statement.

The project envisions a 525-mile pipeline from northeast British Columbia to a proposed export terminal at Prince Rupert. The pipeline could carry as much as 4.2 billion cubic feet per day. Ebel said the deal could help meet LNG demands from the Asian market.

No timeline or financial details were outlined by the company. Aboriginal and provincial officials in British Columbia have expressed concerns about an oil pipeline planned for the region. They say energy developments put the coastal environment at risk.

Spectra said it would work with aboriginal and local groups to refine the project route if needed.

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