Minister of Natural Resources Seamus O'Regan says the feds need more time to properly consult with Indigenous communities before voting on the project (Canadian Press File Photo)

By Shaun Penner

NOVA Gas Transmission Ltd. 2021

Decision on fate of NOVA Gas Transmission expansion delayed by feds

May 20, 2020 | 10:17 AM

The decision on whether or not TC Energy’s NOVA Gas Transmission Ltd. 2021 system expansion project will go ahead is getting pushed back by the federal government, with Canada’s Natural Resources Minister citing the COVID-19 pandemic as the core reason.

The planned expansion would add 344 kilometres of pipeline to TC’s existing network that would send sweet natural gas from the Montney and Duvernay formations in the Grande Prairie area, south to the Calgary area. The expansion would include eight loops and three compressor stations.

The expansion project is noted on the left side of the map (Photo: National Energy Board / Canada Energy Regulator)

Though the Canada Energy Regulator (CER) deemed the project to be in the public interest back in February, Seamus O’Regan says more consultation with Indigenous communities is required before he and his fellow cabinet ministers can vote on it. The issue is that COVID-19 has slowed their ability to do that.

“Due to health and safety guidelines and concerns related to the pandemic, Phase III consultations have faced delays, and some Indigenous groups have requested additional time so that they may fully participate in Crown consultations on NGTL 2021.

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“As with all major projects, the Government of Canada can only make a decision on NGTL 2021 once we fulfil our constitutional duty to meaningfully consult with Indigenous peoples.”

Access to impacted crown lands for Indigenous peoples was one of two outstanding risks noted by the CER in its report back in February, with the other being the adverse impact on the Little Smoky Caribou Range.

Despite that, the CER did recommend the project get federal approval, granted that it meets 34 conditions set out in its final report to the federal government.

Minister O’Regan says in his statement issued Tuesday that to allow for the proper consultations to happen, the timeline for the federal government to make a decision on the project has been pushed to October 19, 2020.

“The continuity of Canada’s energy sector is critical to the recovery of our economy,” said O’Regan. “Canada’s economy has benefited from our oil and gas sector. Our country will continue to rely on the hard work and ingenuity of the people employed in this industry as we build a stronger, more sustainable economy.”

The project is estimated to cost TC Energy approximately $2.3 billion.