TransCanada (TRP) To Proceed With $6 Billion PRGT Project
Zacks Investment Research | Jan 08, 2018 09:30PM ET
After a careful and comprehensive review of its Prince Rupert Gas Transmission Project (PRGT), TransCanada Corporation (TO:TRP) has decided to advance with the $6-billion natural gas pipeline expansion plan. After a few setbacks, TransCanada finally received approval from the B.C. Environmental Assessment Office for the pipeline’s expansion on Dec 20, 2017.
TransCanada has been permitted to construct two additional camps along with a standby compressor unit at each of its eight proposed compressor stations.The newly approved camps will add another 53 hectares to the project’s land area. Further, it will lead to the creation of additional 200 jobs.
The 559-mile pipeline was expected to deliver natural gas from Hudson’s Hope to the Pacific NorthWest LNG Facility — a natural gas liquefaction and export facility — near Prince Rupert. Post the cancellation of the $36-billion Pacific Northwest LNG (PNW LNG) project, despite being green-lit by the Trudeau government, TransCanada had been conducting detailed evaluation of the PRGT project to ascertain its viability. Though TransCanada has decided to continue with the PRGT project, it has not clearly stated what alternatives it has thought of regarding the natural gas pipeline.
Malaysia’s integrated-energy player Petronas scrapped the PNW LNG project in July 2015 as the low commodity prices had made the economics of the project (announced in 2013) less profitable. Unfavorable market conditions have led to the cancellation of few other LNG projects in the Prince Rupert area.China's CNOOC Limited (NYSE:CEO) had pulled the plug on the $28-billion Aurora LNG project in September 2017 after four years of feasibility study. Further, Royal Dutch Shell (LON:RDSa) plc Zacks Investment Research
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