KUALA LUMPUR, March 23 (Reuters) - Malaysia's Petronassaid on Friday it is one of the producers involved inTransCanada's proposal to expand a pipeline system thatwould open up more markets for the energy company's gas producedin Western Canada.
Pipeline operator TransCanada in February said it would goahead with the C$2.4 billion ($1.9 billion) expansion of itsNova Gas Transmission Line (NGTL), which moves gas from Albertaand British Columbia to markets all over North America.
In an emailed statement to Reuters, Petronas said itssubsidiary Progress Energy Canada Ltd is one of the elevenshippers involved in TransCanada's application to regulators.
If the pipeline is approved, Petronas would be able todeliver more gas from its British Columbia assets into NGTL,which serves the western Canadian gas market and major marketsin eastern North America, the Malaysian state company said.
Last year, Petronas scrapped an earlier plan to build aliquefied natural gas (LNG) export terminal in British Columbiaat a cost of $29 billion due to weak gas prices and after delaysin getting regulatory approval.
Petronas had said it would look at other ways to generaterevenue from its assets in British Columbia.
The company's North Montney assets in British Columbia arerich in natural gas. Over 13,000 drilling locations have beenidentified in the area with about 215 wells drilled, accordingto information available on Progress Energy's website.
Last month, Progress Energy sold its oil and gas assets inAlberta's Deep Basin, and said the proceeds from the sale wouldbe used to develop its North Montney assets.
($1 = 1.2914 Canadian dollars)(Reporting by A. Ananthalakshmi; Editing by Richard Pullin andTom Hogue)
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