Progress Energy Canada has selected TransCanada to design, build, own and operate the proposed C$5bn ($5bn) Prince Rupert Gas Transmission project in British Columbia (BC).

The 750km long gas pipeline will be constructed to transport natural gas from the North Montney gas-producing region near Fort St. John to the newly-announced Pacific Northwest LNG export facility in Port Edward near Prince Rupert in BC, Canada.

The Prince Rupert Gas Transmission project is expected to have an initial capacity of two billion cubic feet of gas (bcf) per day, which can be expanded to 3.6 bcf in the future.

The company is also planning to extend its existing gas system NOVA GAS Transmission in northeast BC and connect it to both Prince Rupert project and North Montney gas supply from Progress Energy and other parties.

TransCanada’s new infrastructure will allow Pacific Northwest LNG export facility to have access not only to the North Montney supplies but also to the Western Canada Sedimentary Basin (WCSB) gas supply.

The extension of the existing infrastructure is estimated to cost about C$1bn ($1bn) to C$1.5bn ($1.51bn), and the extended system is expected to begin operations by the end of 2015.

TransCanada president and CEO Russ Girling commented, "The proposed Prince Rupert Gas Transmission project will allow British Columbians, and all Canadians, to continue to benefit from the responsible development of the growing supply of valuable natural gas resources in the WCSB."