A major pipeline expansion project is getting underway, with federal officials saying it will help increase natural gas capacity and support economic activity across northeast B.C.
Construction has started on Enbridge’s Sunrise Expansion Program, a $4-billion project that will expand the company’s Westcoast Pipeline system and improve the movement of natural gas from northeastern B.C. producers to markets in the province, Canada and the United States.
The federal government announced the start of construction Monday, following regulatory approval earlier this year.
The project is expected to add up to 300 million cubic feet per day of natural gas transportation capacity to the pipeline system.
Officials say the added capacity will help support growing energy demand and future LNG export projects on the B.C. coast, including facilities that rely on natural gas produced in the northeast.
For communities such as Fort St. John, Dawson Creek and Chetwynd, the expansion is expected to support continued activity in the region’s natural gas sector by improving access to markets.
The project includes about 139 kilometres of new pipeline looping, upgrades to existing compressor stations and additional infrastructure along the southern portion of the Westcoast Pipeline system.
One of the planned compressor station upgrades will take place near Azouzetta Lake, west of Chetwynd, placing the community close to the northern end of the expansion corridor.
The project is tied to the Montney natural gas formation, one of Canada’s largest and most productive natural gas regions. The formation has been a major driver of investment, employment and economic activity across northeast B.C.
Federal officials estimate the expansion could contribute more than $3 billion to Canada’s gross domestic product, create about 2,500 jobs and generate approximately $700 million in tax revenue.
Energy and Natural Resources Minister Tim Hodgson said the project will help meet energy needs while creating economic opportunities.
“This expansion will provide reliable natural gas for homes, hospitals, schools and B.C.’s growing low-carbon energy sector while creating thousands of well-paying careers and new, diverse international trade opportunities,” Hodgson said in a statement.
Last year, 38 Indigenous communities in B.C. acquired a 12.5 per cent ownership stake in the Westcoast Pipeline system through support from the federal government’s Indigenous Loan Guarantee Program.
The company says more than $52 million has already been spent on hiring and procurement with Indigenous businesses connected to the project.
Construction is expected to continue until 2028, when the expanded pipeline system is scheduled to begin operating.
