TransCanada Inks $1.9 Bln Merrick Mainline Pipeline Project

(RTTNews) - Energy infrastructure company TransCanada Corp. (TRP.TO, TRP) Wednesday said its unit NOVA Gas Transmission Ltd. has signed agreements with Chevron Canada Ltd.(CVX) and Apache Canada Ltd. for nearly 1.9 billion cubic feet per day of firm natural gas transportation services to strengthen the development of a major extension of TransCanada's NGTL System.

The company said its proposed Merrick Mainline Pipeline Project will be a significant new link in British Columbia's emerging liquefied natural gas export market. This $1.9 billion project is a key component in TransCanada's capital growth plan, which includes $38 billion in commercially secured projects expected to be completed by the end of the decade.

Currently, the company is proceeding its development work on the project, including field studies, engineering and design work, and pipeline routing, to support applications for regulatory approvals and finalize project requirements. Construction of the pipeline is dependent on regulatory approval and a positive Final Investment Decision for the Kitimat LNG project.