... Enbridge Moves Forward on $3.6B T-South Pipeline Expansion

Enbridge Moves Forward on $3.6 Billion T-South Natural Gas Pipeline Expansion in B.C.

Enbridge Inc. will proceed with a $3.6 billion CAD expansion of its T-South segment of its B.C. Pipeline. The company announced Nov. 4 that it had completed a successful open season to increase transportation capacity on T-South, a natural gas pipeline system, which originates near Chetwynd, British Columbia and extends south to the Canada-U.S. border at Huntingdon-Sumas.

The open season was over-subscribed, and Enbridge has sanctioned and is proceeding with a 300 million cubic feet per day (MMcf/d) expansion.

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“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. The 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.

In a separate announcement, Enbridge also announced it will conduct an open season for additional natural gas transportation service on the T-North segment of the B.C. Pipeline, which runs from the Fort Nelson area and transports natural gas south to the T-South segment and east to interconnecting pipelines at the B.C.-Alberta border.

Pending sufficient customer interest, the open season could result in an expansion of T-North of approximately 500 MMcf/d at a capital cost of up to $1.9 billion CAD. The potential expansion would serve growing regional demand for natural gas, West Coast LNG exports and downstream demand.

The T-North open season began Nov. 4 and is targeted to end on Jan. 10, 2023.

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