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    Enbridge sanctions south BC expansion plan

Summary

Two sanctioned expansions will add more than 800mn ft3/day of capacity.

by: Dale Lunan

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Enbridge sanctions south BC expansion plan

 Canadian midstream infrastructure company Enbridge said November 4 it would move forward with a C$3.6bn (US$2.6bn) expansion of its T-South gas pipeline in BC that will add 300mn ft3/day of new capacity.

The expansion will consist of compressor unit additions, pipeline looping and other ancillary station modifications. An application will be filed with the Canada Energy Regulator (CER) in 2024, and the expansion is expected to be in service in 2028.

“The expansion is critical to meet natural gas demand and ensure energy reliability in the region,” retiring Enbridge CEO Al Monaco said. “The project illustrates well the criticality of existing pipe in the ground in minimising the environmental footprint of much needed energy infrastructure.”

Enbridge also said it was advancing engineering and design work on a previously-announced 535mn ft3/day expansion of its T-North system in BC, at an expected capital cost of C$1.2bn. An application to the CER is expected in 2024, with an anticipated in-service date in 2026.

And it has announced a binding open season underpinning a further expansion of T-North to add another 500mn ft3/day of capacity at a cost of C$1.9bn. The open season will close in early 2023.

The T-North and T-South segments comprise Enbridge’s BC Pipeline system, which has a total capacity of 3.4bn ft3/day and moves natural gas from northeast gas fields, primarily in the Montney, to markets in Canada and to connections to US pipelines at the Huntingdon/Sumas meter station near Vancouver.

Enbridge’s expansion plans were unveiled alongside its Q3 2022 financial results, which show modest increases in adjusted EBITDA, to C$3.76bn from C$3.27bn, and distributable cash flow, to C$2.5bn from C$2.3bn.