Enbridge Inc. has secured approval from Ottawa for a $4 billion expansion of its natural gas pipeline system in British Columbia. The project, announced on Friday, aims to boost liquefied natural gas (LNG) exports and enhance energy security for the Pacific Northwest region.
Project Details
The expansion will involve constructing 139 kilometers of new pipeline in several segments parallel to the existing Sunrise pipeline system, which runs from northeastern British Columbia to the U.S. border. Construction is expected to begin this summer, with the pipeline projected to enter service in late 2028.
Matthew Akman, Enbridge's executive vice president, stated that the expansion follows customer demand. "We're following our customers; our customers in B.C. want to take gas offshore," he said during a media call.
Capacity and Benefits
The new pipeline will add 300 million cubic feet per day of capacity. Akman noted that this will help prevent supply shortages and price spikes during peak demand periods. Additionally, he emphasized the growing demand to export Canadian gas to allies and trading partners worldwide.
Natural Resources Minister Tim Hodgson highlighted the project's importance for ensuring gas supply once LNG export facilities, such as the Woodfibre LNG plant near Squamish, become operational. Akman indicated that some gas from the Sunrise expansion would likely be converted into LNG on British Columbia's South Coast.
Broader Impact
When combined with other Enbridge expansion projects on the Northern Aspen Point and Birch Grove lines, the Sunrise expansion is expected to unlock greater LNG export potential across the entire coast. "All of these projects together unlock production in Western Canada and provide more opportunities for natural gas exports," Akman said. "Without these expansions, you can't get the gas from the field to the West Coast. That's the bottom line."
While Woodfibre LNG is the next Canadian export facility slated to come online, two major proposals—the Phase 2 expansion of LNG Canada's export plant in Kitimat and the Ksi Lisims LNG project northwest of Prince Rupert—are nearing final investment decisions.
Regulatory Approval
The Canada Energy Regulator approved Enbridge's proposal on Friday. Akman called it the first major pipeline project approved by Prime Minister Mark Carney's government, marking a shift in approach. In his prepared remarks, he described the decision as "a positive sign that Canada is taking meaningful steps" toward Carney's vision of making Canada an energy superpower.
"There's more of a sense of purpose and an intent and a prioritization, which is what we need to see in Canada," Akman said. He added that there is room to accelerate the process, as Canadian companies compete for capital, particularly with the United States.
