TransCanada held a Non-Binding Open Season from July 14 to July 25, 2008 to assess projects for gas transmission pipelines and related facilities from the Horn River and Montney/Groundbirch areas of northeastern British Columbia to connect with the TransCanada Alberta System.  The Non-Binding Open Season was a success with TransCanada receiving requests for gas transmission service exceeding 1 Bcf/d for each area by 2012 with growth beyond that date.

The increase in volumes of northeast B.C. shale gas has the potential to reduce tolls and optimize access to existing and new markets.

“It’s a potential win-win scenario,” says Steve Clark, vice-president, Commercial-West, Canadian Pipelines. “Connecting northeast B.C. shale gas supply to the Alberta System will provide producers with improved access to markets and increased liquidity for the Alberta System.”

What is Shale Gas?

Shale gas is natural gas trapped in the fractures and pore spaces of shale, a sedimentary rock having laminated layers of fine, claylike particles. For years, shale gas has been called “unconventional” because the methods of extracting it were so different from the way natural gas is usually produced. With higher prices for natural gas, shale gas has become commercially viable, particularly in the shale gas plays in the United States, such as the Barnett, Haynesville, Fayetteville and Marcellus fields. 

Recent improvements in horizontal drilling techniques and well completion technology have brought shale gas front-and-center in the continental search for new supplies.  British Columbia’s shales, particularly in the Horn River and Montney/Groundbirch areas, are now highly sought after by producers and recognized as resources with promising reserve potential.

With the increase in activity in these areas, TransCanada has received numerous requests from customers to build pipelines to connect these shale plays to the Alberta System for access to the NOVA Inventory Transfer (NIT) market.

Moving Forward

Based on the result of the Non-Binding Open Season, TransCanada is conducting preliminary assessments to develop the scope of the projects and related facilities including routing, sizing, receipt point locations and schedule.TransCanada plans to hold a Binding Open Season in the upcoming months through which interested parties will be asked to submit binding requests for service to underpin the pipeline projects and enter into agreements for service.

For more information on the B.C. Open Season process contact your Customer Sales Representative.