Enbridge plans $3.6B natural gas pipeline expansion in B.C.

The expansion is still subject to regulatory approvals, but could be completed by 2028.

Enbridge building

The natural gas pipeline system originates near Chetwynd, B.C. and extends south to the Canada-U.S. border. – Enbridge.

Key Takeaways:

  • Enbridge announced a major southern pipeline expansion following high demand.
  • The firm said it would spend up to $3.6 billion on the expansion.
  • Pending approvals, Enbridge is targeting an in-service date in 2028.

The Whole Story:

Enbridge Inc. plans to spend up to $3.6 billion expanding its pipeline system in B.C. 

The Canadian energy infrastructure firm announced this month it intends to increase the southern segment of its B.C. gas pipeline system due to strong demand. The T-South natural gas pipeline system begins near Chetwynd, B.C. and extends south to the Canada-U.S. border at Huntingdon-Sumas.

The firm announced it recently completed an open season for transportation bids which was was oversubscribed. Enbridge has sanctioned and is proceeding with a 300 million cubic feet per day (MMcf/d) expansion at a capital cost of up to $3.6 billion. 

“This expansion illustrates the immense strategic importance of our B.C. natural gas system in supplying regional and global energy demand with low-emission natural gas,” said Cynthia Hansen, executive vice president and president of gas transmission and midstream at Enbridge. “And it also demonstrates how we’re able to leverage our conventional energy transportation assets to extend our growth and generate value for our shareholders.”

The T-South expansion will involve adding pipeline loops and additional compression under a cost-of-service framework, backed by long-term contracts with a weighted average term of 65 years. 

Enbridge noted that the exact location of the loops and accompanying compression will be determined in the coming months after detailed consultation with Indigenous communities and stakeholders and after environmental and routing assessment have been completed. Once complete, the capital cost estimate will be updated prior to filing the regulatory application, anticipated in 2024.

“Enbridge’s assets in the ground continue to be in high-demand and will continue to be critical in supporting growing energy demand while providing the world with a safe and secure source of energy,” added Hansen. 

Pending regulatory approvals, the target in-service date for the T-South expansion is sometime in 2028.

Share

Get smarter on the 🇨🇦 construction industry in just 5 minutes

Sign up for the free weekly newsletter for news, trends and insights in the Canadian construction industry.

Key construction topics

Topics

Newsletter

Get the 5-minute, weekly newsletter about the Canadian construction industry.

© SiteNews 2023. All rights reserved. Brought to you by SitePartners