The 25km pipeline will serve as a trunk line to support the gathering of up to 250 million cubic feet per day (mmcfd) of natural gas from the liquids-rich Montney area.
Provident and AltaGas will each own a 30% interest in the project and have a combined 152mmcfd of firm shipping capacity.
The pipeline is expected to begin full operation by the fourth quarter of 2011.
Provident Energy is a Calgary-based corporation that owns and manages a natural gas liquids midstream business.
