Photo: TC Energy

By Shaun Penner

2021 NGTL System Expansion

NOVA Gas Transmission expansion gets go-ahead from federal energy regulator

Feb 21, 2020 | 11:02 AM

An expansion to the NOVA Gas Transmission pipeline system in the Peace Country has earned the backing of the Canada Energy Regulator.

The network, which is owned and operated by TC Energy, had applied to build a 344-kilometre pipeline to expand its network back in 2018. The pipe 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, noted on the left of the map, could begin construction in the spring of 2021 (Photo: National Energy Board / Canada Energy Regulator)

After extensive consultations with Indigenous communities, including Horse Lake First Nation, as well as industry and governmental organizations, the CER released its decision in a 330-page report on Wednesday. That decision deems the pipeline to be in Canada’s public interest.

“In the Commission’s view, the benefits of the project are considerable and would be realized throughout the lifecycle of the project,” stated the commission’s report.

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The CER listed a number of benefits to the expansion, which include:

• Increased access to diverse markets for Canadian natural gas
• Maintained access to natural gas supplies for consumers
• Creation of jobs across Canada
• Development of capacity of local and Indigenous individuals, communities, and businesses
• Direct spending on pipeline materials in Canada
• Considerable revenues to various levels of government which is spent to support programs and services in both Indigenous and non-Indigenous communities.

Two major drawbacks were also noted in the report, though. Those include the impact on the Little Smoky Caribou Range and the potential effects on Indigenous peoples having access to crown land, where a majority (around 75%) of the pipe would be built.

The report notes the Little Smoky Caribou Range is already subject to significant forestry cuts and existing right-of-way.

In light of the current protests and rail blockades over the LNG pipeline in Northern B.C., the commission notes that they understand not all will be in support of such a decision.

“The benefits and burdens of any project are never distributed evenly across the country. In light of these circumstances, reasonable people can and will disagree on what the best balance and outcome is for Canadians.”

However, the CER has imposed 34 conditions on the project that are contingent on their decision. With that, it feels TC Energy has the correct plans and procedures in place to mitigate those issues.

“The Commission concludes that, with the implementation of NGTL’s environmental protection procedures and mitigation measures, and the Commission’s recommended conditions, the project is not likely to cause significant adverse environmental effects,” states the report. “The Commission has recommended a number of conditions on the project with respect to protecting the caribou habitat in the Little Smoky Caribou Range.”

The final verdict will now go before the Federal Cabinet for approval. If all goes according to plan, work could begin on the pipeline by the spring of 2021.

The cost to build the expansion is estimated at $2.3 billion.