Natural Gas Daily
BC Approves Pacific Trails Pipeline Expansion to LNG Terminal

Thursday, April 19, 2012

The British Columbia government has approved a gas pipeline expansion that would allow about 2 Bcf/d of gas to flow to the proposed Kitimat LNG export terminal on the Western Canadian coast.

Rick Margolin, a senior analyst at Bentek Energy, said the Pacific Trails expansion marked "another key regulatory approval" needed for British Columbia LNG exports to move forward. Bentek is a unit of Platts.

The expansion not only enables more gas to flow to Kitimat but could also support the British Columbia LNG Export Co-operative project slated to go into service between late 2013 and early 2014, Margolin said.

British Columbia LNG Export is smaller in scope than Kitimat at 250,000 Mcf/d. It is a joint venture between the Haisla First Nation and Houston-based LNG Partners and received a 20-year export license from the Canadian government April 11.

Margolin said the expanded Pacific Trails pipeline could also support a third project that could be developed in the region.

Margolin said the proposed LNG projects should lead to "a bit of an uptick" in basis prices at Westcoast Station 2 and AECO-Nit in Alberta when they go into service.

To access a complete copy of this report, please click here.