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$2.3 billion project

Feds approve natural gas pipeline expansion west of Rocky Mountain House

Oct 20, 2020 | 1:57 PM

The federal government has approved the expansion of a natural gas pipeline through Clearwater County, west of Rocky Mountain House.

On Tuesday, Natural Resources Minister Seamus O’Regan gave the green light to the NOVA Gas Transmission Ltd. (NGTL) 2021 System Expansion Project.

Officials say the approval, which comes with 35 conditions, was based on facts, science, Indigenous knowledge, the public interest and careful consideration of the concerns of potentially impacted Indigenous communities and wildlife.

The $2.3-billion project is billed to create up to 2,920 jobs and give natural gas producers and shippers greater access to domestic and US markets while helping to facilitate the phase out of coal-fired electricity by 2030.

“We want good projects to get done, moving our natural resources to new markets and creating good jobs,” said O’Regan. “This means meeting our duty to meaningfully consult with potentially impacted Indigenous communities and addressing risks to the environment and species at risk.”

In making this decision, the government has made amendments to the Canada Energy Regulator’s conditions for approval, related to caribou and Indigenous engagement. In particular, strengthening five conditions proposed by the regulator and adding one new condition in order to better address impacts to section 35 Indigenous rights, and help mitigate the disruption of the project’s construction on caribou habitat.

As part of these updated conditions, NGTL will now be required to restore 3,840 hectares of caribou habitat (30 times the size of the habitat impacted by the project) and seek to establish an Indigenous Working Group to assist with the planning for restoration and monitoring for the protection of the Little Smoky Caribou range.

A new accommodation measure to expand eligibility for the Terrestrial Cumulative Effects Initiative to monitor the cumulative impacts on the environment was also approved.

NGTL, a wholly-owned subsidiary of TC Energy Corporation, is proposing to construct, own and operate the Edson Mainline Expansion Project.

The project consists of two pipeline components which would add up to approximately 85 kilometres of newly constructed 48-inch pipe to the NGTL System.

The Elk River section consists of roughly 40 km of pipeline located west/northwest of the O’Chiese First Nation. The Alford Creek section consists of approximately 45 km of pipeline located 29 km southwest from Rocky Mountain House.

“Despite months of delay, we are pleased the federal government has approved this key infrastructure project, which will create significant economic benefits and good jobs for Albertans, at a time they are needed the most,” Sonia Savage, Alberta’s energy minister, said Tuesday. “The NGTL expansion will provide increased capacity that is critically important to market access for the Canadian natural gas industry, which has suffered from bottlenecks and capacity constraints to key markets in Eastern Canada and the United States.”

Clearwater County Reeve Tim Hoven says the decision is a great step forward.

“We think it’s going to get product to market and will help boost our economy,” he points out. “We are also happy that the province’s decision about changes to the municipal assessment might affect the short-term revenue from this pipeline but in the long-term, it will be good for the residents of Clearwater County.”

Rocky Mountain House Mayor Tammy Burke says she’s excited to see the project moving forward.

“I know TC Energy has been in our community I believe since 2017 consulting on this project, so this year of all years, we certainly could use this boost,” she admits. “I’ve reached out to a couple of landlords and they’re already seeing an increase in their rental properties, as well as our hotels are already seeing bookings and they anticipate many more bookings to come. So our food and beverage industry will also see a huge impact.”

Local contractors are also excited to get going on the project, according to Burke.

“We have a lot of very qualified service industry in our community,” adds Burke. “We’re a community that has experienced workers and they’re all anxious to get to work. So the sooner it starts, the better.”

Project construction activities are anticipated to get underway in the third quarter of 2021.

The pipeline is hoped to be operational by April 2022.