Canada's PRGT Natural Gas Pipeline Signs First Onshore Construction Contract
2026-08-13 11:06
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en.Wedoany.com Reported - Canada's Prince Rupert Gas Transmission Project (PRGT) has signed a construction agreement with Surerus Murphy Joint Venture (SMJV). This is the first onshore pipeline construction contract awarded under the PRGT project, and the project developer plans to have subsequent onshore works also undertaken by Canadian construction firms.

SMJV is a joint venture between Surerus Pipeline of Fort St. John, British Columbia, Canada, and J. Murphy & Sons of the United Kingdom. The latter has business operations in Calgary and Edmonton, Canada. The two parties established the joint venture in 2015, with business covering the construction of pipelines, ancillary facilities, and compressor stations.

PRGT has not disclosed the specific pipeline sections under SMJV's responsibility, the contract value, construction length, or mobilization schedule. The contract requires SMJV to develop a local and Indigenous participation plan, and PRGT project officials stated that similar requirements will apply to other major contractors.

PRGT is a planned natural gas pipeline of approximately 750 kilometers in length that will transport natural gas from northeastern British Columbia to the province's northwest coast, supplying feedstock gas for the proposed Ksi Lisims LNG project. Ksi Lisims LNG plans to build two nearshore floating LNG production and storage facilities with a total designed capacity of 12 million tonnes per year.

PRGT was originally developed by TC Energy. Nisga'a Nation and Western LNG completed the acquisition of the project in 2024, with each holding a 50% interest through NW Infrastructure Limited Partnership. Construction within Nisga'a treaty lands commenced in the same year, so this contract corresponds to the main onshore works contracting arrangement and does not represent the project's first construction start.

In June 2025, the British Columbia Environmental Assessment Office confirmed that PRGT had met the "substantial commencement" threshold, keeping the project's environmental assessment certificate issued in 2014 valid. The regulator stated that it will continue to monitor the project's compliance with environmental requirements during subsequent construction and operation.

The contract for PRGT's offshore pipeline section was awarded to Swiss subsea pipeline contractor Allseas in July 2026. Bechtel is involved in overall execution planning for the entire pipeline as well as contractor evaluation and selection. With SMJV securing the first onshore construction contract, PRGT has now secured both an offshore works contractor and its first onshore works contractor.

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