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Progress supports extension of North Montney sunset clause

Earlier this year, NOVA Gas Transmission Ltd. applied to the National Energy Board (NEB) for a one-year extension to the sunset clause for its North Montney project, citing continuing uncertainty about the timing of Progress Energy Canada Ltd.
montney
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Earlier this year, NOVA Gas Transmission Ltd. applied to the National Energy Board (NEB) for a one-year extension to the sunset clause for its North Montney project, citing continuing uncertainty about the timing of Progress Energy Canada Ltd.’s (PETRONAS) Pacific NorthWest LNG project.

In a letter to the NEB dated July 5, Progress noted that unanticipated regulatory delay has been experienced in obtaining approvals associated with the downstream Pacific NorthWest LNG facilities.

This delay has affected the ability to make a final investment decision (FID). Achieving FID was incorporated into the board’s approval conditions for the North Montney project. “It now appears that this regulatory delay will continue through the summer and into the fall,” the company stated, adding that “Progress Energy urges the board to grant the extension as requested by NGTL.”

“The requested extension is warranted and is consistent with the past practice of the board to extend its approvals in order to accommodate delays associated with obtaining approvals from other regulatory authorities,” the letter noted. “Progress Energy further notes that significant costs have been incurred in advancing the North Montney project.

“As the board is aware from evidence submitted in support of the North Montney project, there is a large gas supply that requires the construction of the North Montney facilities. The requested extension is critical to preserving the significant investment made to date to accommodate the development of this North Montney gas supply.”

-- Daily Oil Bulletin