TransCanada Corp. has bagged a contract to build a $5 billion pipeline to connect BC shale natural gas production sites to the West Coast.

The company based in Calgary said on Wednesday that it will design, build, own and operate the proposed Prince Rupert Gas Transmission project for Progress Energy. Progress Energy, which is a unit of Malaysia's Petronas, will connect the reserves of BC shale gas to the western coast of country for exports.

TransCanada is planning to spend about $1.5 billion to extend an existing transmission line that will transport fuel for Progress and other gas suppliers. Progress Energy is aiming to build a facility on Lelu Island near Prince Rupert in BC. At the plant, natural gas will be chilled into a liquid state so that it can be exported into other markets around the world.

TransCanada CEO Russ Girling said in a release that, "Together with our previously announced Coastal GasLink Pipeline project, this is the second major natural gas pipeline proposed to Canada's West Coast for TransCanada - demonstrating the confidence that LNG sponsors continue to place in our ability to design, build and safely operate pipeline systems."

TransCanada was earlier awarded a contract by Royal Dutch Shell-led consortium for building a $4-billion Coastal GasLink pipeline between northeastern B. C. shale fields and an LNG facility proposed for Kitimat in the state.