TransCanada to seek early OK for North Montney pipeline project

|About: TransCanada Corporation (TRP)|By:, SA News Editor

TransCanada (TRP -0.7%) says it has secured commitments from shippers for the North Montney Mainline pipeline to Malaysian oil company Petronas' proposed Pacific Northwest liquefied natural gas terminal in British Columbia and will seek approval for early construction.

TRP says the requested variance would allow it to move forward with construction of most of pipeline, at an estimated capex of ~$1.4B, prior to a final investment decision on the project.

In support of the variance, TRP says it has secured new 20-year commercial contracts with 11 shippers for ~1.5 B cf/day of firm service; it is unclear how North Montney and its committed shippers would be affected if Petronas eventually decides against proceeding with the project.