Enbridge set to take over most of B.C.'s gas pipelines - Action News
Home WebMail Tuesday, November 26, 2024, 10:03 AM | Calgary | -16.2°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
British Columbia

Enbridge set to take over most of B.C.'s gas pipelines

Enbridge is set to take over the majority of B.C.'s gas pipelines and numerous B.C. gas plants in a merger with Spectra Energy announced Tuesday.

Northern Gateway proponent gets 55% of B.C. gas pipelines and LNG stake in merger

Enbridge's merger with Spectra will give the energy giant control of major B.C. gas plants and pipelines. (CBC News)

Enbridge, the company behind the controversial Northern Gateway oil sands pipeline project,isset to take over 55 per centofB.C.'s gas pipelines as well as major gas processing plants.

As part of a merger with Houston-basedSpectra announced Tuesday,Enbridge will also take over Spectra'sstake in a majorliquified natural gas export proposal.

The Westcoast Connector LNG project proposes pipinggas across northern B.C.along a routesimilar to the one EnbridgeNorthern Gateway once mapped out totransportcrude to oil tankers on B.C.'s North Coast.

A map of Spectra's gas pipelines and gas plants in British Columbia that are part of the Enbridge merger. (Contributed/Spectra Energy)

'Are they hoping to convert gas pipelines to oil?'

Alberta business columnist Deborah Yedlin praises Enbridge's expansion as "great news ... for Canada's energy sector."

But somewho opposed Enbridge'sNorthern Gateway project are concerned.

"Enbridgedoesn't have a social licence to operate in northern B.C.," said NadiaNowak, a Prince George student who's been vocal in her opposition toNorthern Gateway."I think people will feel quite nervous about them."

"Are they hoping .... to convert gas pipelines to oil pipelines?" asked Nowak. "Are they realizing they failed to export oil sands crude and are hoping to have better luck with LNG?"

Opposition to Enbridge Northern Gateway remains strong in northern B.C. Here, a protester holds a sign shaped like a whale during a Vancouver demonstration in 2013. (Canadian Press)

Enbridge 'more than Northern Gateway'

Yedlin, abusiness columnist with the Calgary Herald, said the merger makes Enbridge the largest energy infrastructure company in North America.

"This takes them to being a global player ...from being identified with this one Northern Gateway project," said Yedlin. "I've said all along, Enbridgehas been a company that's more than Northern Gateway."

Yedlinsays it'spossible for companies to convert gas pipelines to transport bitumen, but she doesn't think that's Enbridge's plan.

"Theoretically you could.Enbridgehas done line reversals. Gas pipelines have beenrepurposedto use oil. [But] I don't think that's why they're buying Spectra."

'It's a branding issue'

Still, the divisive Northern Gateway debate continues to dogEnbridgeinB.C., a province whereSpectra is a major, long time player.

Spectra Energy calls itspipeline system "the backbone of B.C.'s natural gas industry."

Once the Spectra merger is complete, Enbridge'sB.C.pipelines willstretchfrom Fort Nelson in northeastern B.C.and Gordondaleat the B.C./Alberta border, south to the Canada/United States border atSumas.

"It's a brandingissue," saidYedlin. "This is a challenge forEnbridge. For certain, they'll have to decide if they keep their Spectra name [in B.C.]."