During a transition period, the board has approved the applied-for rolled-in tolling design of the project, subject to conditions.
The conditions include a requirement for NGTL to maintain a separate cost pool and separate accounting records for the project.
NOVA Gas Transmission (NGTL), a wholly owned subsidiary of TransCanada, has secured approval from the Canadian National Energy Board (NEB) for the development of the $1.7bn North Montney Mainline Project.
The pipeline will be an expansion to NGTL's existing Groundbirch Mainline section (Saturn Section), which is located approximately 35km south-west of Fort Street John, and will connected to the North Montney area in northeastern British Columbia (BC).
Currently, the project is due to receive Governor in Council (GIC) approval for construction.
The majority of the NEB members have also recommended the GIC to issue a certificate to construct and operate the pipeline.
The North Montney Mainline project includes construction of a proposed 305km-long gas pipeline in the Peace River Regional District of British Columbia, Canada, in order to deliver natural gas to the existing NGTL facilities.
TransCanada president and chief executive officer Russ Girling said: "The Project is a critical component in the infrastructure chain between prolific and growing Canadian gas supply and existing and new markets, and the NEB recommendation is a significant milestone for the growth of our NOVA Gas Transmission Ltd. (NGTL) System.
"This Project and the NGTL System are important parts of TransCanada's $46 billion capital growth plan, which includes more than $14 billion in proposed natural gas pipeline projects to support the emerging liquefied natural gas (LNG) industry on the west coast of British Columbia."
The project also includes metering facilities, valve sites and compression facilities as well as an interconnection with TransCanada's proposed Prince Rupert gas transmission project to provide natural gas to the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility near Prince Rupert, BC.