The news is significant for the Calgary-based firm as it will be responsible for designing, building, owning and operating the proposed project for Progress Energy Resources, which since late last year has been a subsidiary of Malaysian state-owned firm PETRONAS.

TransCanada added in the press release that it will spend approximately $1.5 billion to extend an existing transmission line to serve Progress and other natural gas suppliers. Funding will be aimed at extending its existing NOVA Gas Transmission system in Northeast BC so that it connects to both the Prince Rupert Gas Transmission project and additional North Montney gas supply from Progress and other parties.

Second major project in a year

The project is the second major deal that TransCanada has been awarded within the space of a year, and will go a long way towards helping the company maintain its momentum in the markets. The first deal came last summer, when the pipeline giant saw its stock surge after being chosen by a Royal Dutch Shell-led (LSE:RDSA) consortium to build the $4-billion Coastal GasLink pipeline between Northeastern BC shale fields and an LNG facility proposed for Kitimat, BC.

“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,” said Girling in a press release.

An overlooked opportunity

Investors are often left wondering whether to invest in oil or gas, and now many are once again posing the question of whether pipeline companies are an overlooked investment opportunity.

Investment in a company such as TransCanada — or any other large-scale pipeline firm for that matter — is becoming more and more appealing based on the fact that operators often boast steady revenue streams, are frequently under long-term contracts and remain less exposed to volatile resource prices since contracts tend to be fee-based and are therefore less affected by swings in commodity prices.