The federal government has approved a $4-billion plan by Enbridge Inc. to expand an existing natural gas pipeline in British Columbia, a move one executive says demonstrates a greater "sense of purpose" from Ottawa toward bolstering Canada's status as a global energy exporter.
The Sunrise project would add 300 million cubic feet per day of transportation capacity on Enbridge's 3.6-billion-cubic-feet-per-day Westcoast system, which connects gas fields in northeastern B.C. and northwestern Alberta to the Canada-U.S. border. The project involves adding almost 140 kilometres of new pipe by constructing 11 looping segments parallel to the existing line.
The gas that would flow through the expanded line is not bound for any particular destination, but "some of the capacity will no doubt go offshore," Matthew Akman, who leads Enbridge's gas transmission and midstream business, told reporters Friday.
Sunrise was not reviewed under federal legislation passed last year meant to speed along new infrastructure deemed in Canada's national interest. Nonetheless, Akman said he appreciates the improved tone under Prime Minister Mark Carney's Liberal government.
"There's more of a sense of purpose and an intent and a prioritization, which is what we need to see in Canada," Akman said.
"Going forward, though, I think we all need to work more closely together to make this even faster. And there are ways to have just as rigorous a consultation process, just as rigorous an environmental review process and community engagement process, but do it faster.
"We've been at this project almost four years already and still don't have a shovel in the ground."
All of the soon-to-be built space on the Sunrise project has been spoken for, Akman said, noting the company is also expanding gas infrastructure in the northern part of B.C.
The federal government said in a news release that the project will ensure B.C. has enough gas supply as liquefied natural gas export facilities, where gas is chilled into a liquid and shipped abroad on specialized tankers, come online. Enbridge has a 30 per cent interest in the Woodfibre LNG project under construction in Squamish, B.C., with Pacific Energy Corp. holding the rest.
"This project will enable us to heat more homes, businesses, hospitals and schools while bolstering British Columbian industry, including for LNG, and creating thousands of jobs. It is proof that, in partnership with industry and Indigenous partners, we can strengthen energy security and price stability and create new international trade opportunities while meeting rigorous environmental and safety standards," Natural Resources Minister Tim Hodgson said in a news release.
"This is what being an energy superpower looks like."
B.C. Premier David Eby said the expansion is good news for jobs in his province.
"At a time of uncertainty and global instability, this is how we create the prosperity needed to pay for the public services that make us all better off," he said in a news release.
But Alex Walker, energy analytics program director with Environmental Defence Canada, called Ottawa's approval "a disastrous climate decision that prioritizes fossil fuel industry growth over Canada's climate commitments."
Construction on the pipeline is expected to begin this summer, with startup targeted for late 2028.
Last year, Enbridge inked a partnership with an alliance of three dozen First Nations in B.C. for a 12.5 ownership stake in the existing Westcoast pipeline. Akman said those groups are not obligated to take on equity of the pipeline expansion, but have the option to do so.
Akman said there is opportunity to build even more gas pipeline capacity — from scratch or by expanding existing infrastructure — under the right conditions.
One is to ensure a speedy review process "because we can't tie capital up forever doing these things."
Another is to ensure Canadian investments can compete with projects being pursued in the United States, where Enbridge has a substantial presence and has been seeing better returns.
"We're a large company with investors all over the world," Akman said. "So if we see competitive returns on capital in British Columbia, then we could do any of those types of investments."
Picture Courtesy: THE CANADIAN PRESS/Jeff McIntosh
