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Pipeline expansion receives permits

Published by Steve Coleman on April 18, 2012

The pipeline that would carry natural gas to what could become Canada's first export-geared liquefaction plant has received the application it needs to grow.

Plans to resize the $1 billion Pacific Trails pipeline will expand the pipe's diameter from 106 centimetres (42 inches) to 91 cm (36 inches). The network will feed the $4.5 billion LNG facility that Encana Corp., Apache Canada and EOG Resources plan to open in 2015.

While the pipeline has the potential to increase capacity, the companies behind the pipeline project say the decision was made to cut down on the friction created by moving the gas and save operating costs.

An abundance of natural gas at home has energy companies across North America trying to break into the market in Japan, Korea and China. While LNG is worth $2 US in North American commodity markets, the same amount can fetch $16 US in Asia.

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