Proposed PNG Reactivate Capacity Project

About the Project

Pacific Northern Gas (PNG) is proposing to reactivate capacity on the Western Transmission Gas Line, enabling the delivery of increased natural gas volumes to meet the supply required for new industrial customers.

The Western Transmission Gas Line is a critical part of PNG’s system, linking natural gas service from community to community. For more than a decade, it has been transporting gas well below its capacity due to several large industrial customers closing their operations. Recently, PNG signed agreements with new industrial customers. To meet their service requirements, PNG is now proposing the PNG Reactivate Capacity Project to restore portions of the system currently not in use, upgrade other components and add additional compression.

Customer Benefit

PNG cares about providing value for customers and keeping natural gas service rates affordable. This project provides a positive benefit to customer rates by increasing the amount of gas flowing through the system as a result of new industrial loads.

The additional natural gas volumes are anticipated to offset the approximate $88-million cost associated with this project. Each of PNG’s 20,400 customers in the Northwest will benefit from the increased system use, which will work to stabilize the natural gas delivery rates to these customers.

In addition, when approved, the project will represent a significant investment in Northwest B.C. and create economic and employment opportunities for the region.

Location

The project will enable increased volumes of natural gas to enter the PNG system at Summit Lake and be transported to customer locations in Terrace, Port Edward and Prince Rupert.

PNG is planning to reactivate a number of key system assets that have not been in use for over a decade. This includes the reactivation of four existing compressor stations and sections of pipe serving the stations. PNG also plans to install short pipeline extensions from the existing main line to the new customers’ locations. Additional compression will be supplied by two new compressor stations, one planned for the Terrace Airport Industrial Park and the other to be in proximity to PNG’s existing pipeline system assets near the Salvus Highway Maintenance Yard / Kasiks Lodge.

The work is expected to take place within PNG’s existing pipeline corridor, referred to as a right-of-way, in addition to existing industrial areas, new surface leases and nearby permitted temporary workspaces.

 

 

Timelines and Next Steps

The project is in the early planning stages, and PNG filed a Certificate of Public Convenience and Necessity application on March 5, 2021 for approval by the British Columbia Utilities Commission (BCUC). The project has an estimated capital cost of approximately $88 million.

A BCUC decision is expected in fall 2021. Following approval, construction would begin in late 2021 and be completed by spring 2024. PNG engaged with Indigenous communities, stakeholders and the public in advance of the BCUC application submission and will continue engagement throughout all project phases.

Proposed Project Schedule

 

Working and Doing Business with Us

PNG is committed to providing project-related employment and business opportunities for local and Indigenous businesses in the vicinity of the project and within PNG’s service territory, where possible.

To register your business, please complete the following form here.

Public Engagement

PNG is committed to engaging early and continuously sharing information throughout the project. In November, we held two virtual information sessions providing the community with the opportunity to hear directly from the project team and ask any questions.

Although the sessions have passed, you are welcome to download the presentation and direct any questions you may have to the project team at the email or toll free number listed below.

Other Ways to Learn More and Provide Feedback

Download our project factsheet
Ask us a question or provide your feedback by phone or email.
Call us at: 1-888-709-7304
Email us at: ReCapProject@png.ca