June 2010 Vol. 237 No. 6

Projects

TransCanada Seeks NEB Approval For Horn River Pipeline

TransCanada’s Alberta System has moved ahead with another critical infrastructure project to access Northeast BC shale gas by filing the Horn River Pipeline Project with the National Energy Board (NEB).

The Horn River basin is a key part of the growing unconventional gas plays in Northeast BC. To access this supply and connect it to North American markets, TransCanada is proposing the Horn River Pipeline. Like the Groundbirch Mainline, the Horn River project takes advantage of existing capacity and market liquidity on the Alberta System to bring these gas supplies to market.

The Horn River Project is a 96.3-mile, 36-inch/24-inch pipeline that extends the Alberta System into the Horn River basin which is located north of Fort Nelson, BC. The project consists of constructing 44.7 miles of 36-inch pipeline and related facilities, as well as the purchase of the existing 24-inch Ekwan Pipeline from Encana. The project has an anticipated in-service date of 2012. To date, shippers have signed initial contracts of 503 Mmcf/d with expected future potential reaching 1.6 Bcf/d.

The Horn River play has the potential to be one of North America’s most prolific shale plays. The play covers 2.96 million acres, twice the size of the Barnett shale play in Texas.

The Groundbirch Mainline Project – a 47.8-mile, 36-inch pipeline – will transport natural gas from the Montney Formation near Dawson Creek in Northeast BC to a tie-in point on TransCanada’s Alberta System. Construction will start soon with the pipeline operational in the fourth quarter. Groundbirch shippers have made contractual commitments to transport volumes growing to 1.1 Bcf/d by 2014.