139 km of new pipeline will be built in several segments parallel to the existing line that runs from north eastern B.C. to the U.S. border.
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Enbridge Inc. predicts the $4 billion expansion of its B.C. natural gas pipeline system approved by Ottawa Friday will provide opportunities for increased liquefied natural gas exports, and improve energy security for the Pacific Northwest region.
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“We’re following our customers, our customers in B.C. want to take gas offshore,” Enbridge executive vice-president Matthew Akman said on a media call.
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Enbridge expects to start construction on the expansion of its Sunrise pipeline system, which will build 139 km of new pipeline in several segments parallel to the existing line that runs from north eastern B.C. to the U.S. border, this summer. It’s expected to be in service in late 2028.
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Akman said its 300 million-cubic-feet-per-day capacity will help head off shortages and gas price spikes during peak demand periods, but “there’s a huge demand to send more of our gas to our allies, to our trading partners all over the world from Canada.”
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Natural Resources Minister Tim Hodgson said Enbridge’s expansion is important to ensure gas supply for the region once LNG export facilities, such as Woodfibre LNG near Squamish, northwest of Vancouver, come on line.
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Akman said some gas from the Sunrise system’s new capacity will likely wind up being turned into LNG on B.C.’s South Coast.
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However, he added that when the project is matched with its other expansion projects on Enbridge’s Northern Aspen Point and Birch Grove lines, it will help open up the potential for greater LNG exports across the whole coast.
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“All of these projects together unlock production in Western Canada and provide more opportunities for natural gas exports,” Akman said. “Without these expansions, you can’t get the gas from the field to the West Coast. That’s the bottom line.”
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While Woodfibre LNG is destined to be the next Canadian export facility, two major proposals — the Phase 2 expansion of LNG Canada’s export plant in Kitimat and the Ksi Lisims LNG northwest of Prince Rupert — are in the process of making final investment decisions.
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The Canada Energy Regulator signed off on the approval of Enbridge’s proposal Friday, which Akman said makes it the first major pipeline project approved by Prime Minister Mark Carney’s government. He said it marks a change in approach.
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In his prepared remarks for Friday’s media call, Akman called the decision “a positive sign that Canada is taking meaningful steps” toward Carney’s vision for making Canada an energy superpower.
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“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.
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Akman added that from the industry’s perspective there is room to speed up the process, because Canadian companies are competing for capital, particularly with the U.S.
