TransCanada to spend big on natural gas pipeline extension CALGARY, Alberta, Aug. 7 (UPI) -- Pipeline company TransCanada said the proposed $1.5 billion extension to a natural gas pipeline could feed an export terminal planned for British Columbia. The Canadian government is working to add diversity to an economy dependent on the United States for energy exports by courting Asian economies. TransCanada said it signed an agreement with Progress Energy, a subsidiary of Malaysian energy company Petronas, to ship 2 billion cubic feet of natural gas per day through the proposed North Montney Mainline. TransCanada said the proposed extension would consist of two sections measuring a total of 189 miles. It would extend from an existing pipeline in northeast British Columbia to an export terminal planned near Prince Rupert, B.C. The company said the project would take roughly two years to complete, provided it gets regulatory approval to proceed. "The initial work for the project is proceeding well and we anticipate filing an application with the National Energy Board in the fourth quarter of 2013 for approvals to build and operate the facilities," TransCanada Executive Vice President Karl Johannson said in a statement. The company said Tuesday the total cost for the project is estimated at approximately $1.5 billion.