Petronas Says Involved In Proposal To Build Gas Pipeline Extension
KUALA LUMPUR, March 23 (Reuters) - Malaysia's Petronas said on Friday it is one of the producers involved in TransCanada's proposal to expand a pipeline system that would open up more markets for the energy company's gas produced in Western Canada.
Pipeline operator TransCanada in February said it would go ahead with the C$2.4 billion ($1.9 billion) expansion of its Nova Gas Transmission Line (NGTL), which moves gas from Alberta and British Columbia to markets all over North America.
In an emailed statement to Reuters, Petronas said its subsidiary Progress Energy Canada Ltd is one of the eleven shippers involved in TransCanada's application to regulators.
If the pipeline is approved, Petronas would be able to deliver more gas from its British Columbia assets into NGTL, which serves the western Canadian gas market and major markets in eastern North America, the Malaysian state company said.
Last year, Petronas scrapped an earlier plan to build a liquefied natural gas (LNG) export terminal in British Columbia at a cost of $29 billion due to weak gas prices and after delays in getting regulatory approval.
Petronas had said it would look at other ways to generate revenue from its assets in British Columbia.
The company's North Montney assets in British Columbia are rich in natural gas. Over 13,000 drilling locations have been identified in the area with about 215 wells drilled, according to information available on Progress Energy's website.
Last month, Progress Energy sold its oil and gas assets in Alberta's Deep Basin, and said the proceeds from the sale would be used to develop its North Montney assets.
($1 = 1.2914 Canadian dollars)
(Reporting by A. Ananthalakshmi; Editing by Richard Pullin and Tom Hogue)
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