The new pipeline will be capable of transporting up to 4.2 billion cubic feet per day of natural gas.
Under the terms of the agreement, Spectra Energy will be responsible for the construction and operations of the system whereas
BG Group will contract the system to transport all of the proposed capacity.
Spectra Energy president and chief executive officer Greg Ebel said, "This project offers B.C. a unique opportunity to access new markets, strengthen its energy infrastructure, engage stakeholders in economic growth and job creation, and ultimately secure the province’s position as a competitive energy leader."
The new pipeline will also be connected to Spectra Energy’s existing transportation system that currently supplies about 2.4 billion cubic feet of natural gas every day.
BG Group and Spectra Energy will each own 50% interest in the project.
Construction of the proposed pipeline is expected to start in 2015 and the service is estimated to begin by the end of 2020.
