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Gas pipeline operator Spectra Energy Corp. said it will construct and operate a natural gas transportation system under a joint venture with BG Group PLC in British Columbia in Canada.

Spectra Energy said BG will contract for the full capacity of the pipeline, expected to transport up to 4.2 billion cubic feet per day (bcfe/d) of natural gas.

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Each company will own 50 percent of the project, Spectra said in a statement.

Spectra currently moves about 2.4 billion cubic feet of natural gas per day through its pipeline system in British Columbia.

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The 525-mile, large-diameter pipeline will connect northeast British Columbia to BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert on the British Columbia coast.

In May, Spectra had said it would spend $4 billion to $6 billion in British Columbia after 2015 to build projects that could include large pipelines connecting the Canadian province with energy-hungry Asian markets.

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