Sabrevois Pipeline Certificate (GC-132) Issued

Summary#

This Order in Council directs the Commission of the Canadian Energy Regulator to issue Certificate GC-132 to Trans Québec & Maritimes Pipeline Inc. so the company can operate the provincially owned Sabrevois pipeline and related facilities as part of its system. The decision (made by the federal government on January 27, 2021) follows the regulator’s report of October 29, 2020 and comes with a set of conditions about safety, the environment and emergency response.

What it does#

• Directs the federal energy regulator to issue Certificate GC-132 so Trans Québec & Maritimes Pipeline Inc. (TQM) can operate the Sabrevois pipeline and associated delivery stations and laterals.
• Brings the Sabrevois assets (about 64 km of mainline plus 11 km of lateral pipe) into the federally regulated TQM system instead of provincial regulation.
• Approves related work described in the regulator’s report, including the planned Bromont Compressor Station and a short interconnect at Saint‑Basile, subject to the regulator’s binding conditions (listed in the regulator’s October 29, 2020 report).
• Allows the purchase price of the Sabrevois assets to be added to TQM’s rate base at closing (meaning the cost may be reflected in future regulated rates), as laid out in the regulator’s decision.
• Is tied to the regulator’s 12 conditions covering environmental protection, safety and emergency preparedness (Appendix II of the regulator’s report).

Who's affected#

• Trans Québec & Maritimes Pipeline Inc. — will operate and integrate the Sabrevois assets into its federally regulated system.
• Énergir L.P. — the former owner that sold the Sabrevois assets to TQM.
• Customers and gas users in the southern Quebec regions of Montérégie and Estrie who rely on local gas transmission and delivery.
• Landowners, municipalities and local emergency responders along the pipeline and at new facilities.
• Workers and contractors: TQM estimated about 50 workers on average and up to 200 at peak for the compressor station construction, and about 15 to 20 workers for the Saint‑Basile interconnect.
• The federal regulator and other government bodies that will now oversee safety, environmental standards and tolls for these assets.
• Indigenous communities the regulator identified as having traditional territory in the area; these include the Algonquin Anishinabeg Nation, Mohawks of Kanesatake, Mohawks of Kahnawake, Abénakis de Wôlinak, and Abenaki First Nation of Odanak. (The regulator and Crown say no Indigenous concerns were raised in this review.)

Why it matters#

• Jurisdiction change: the pipeline moves from provincial to federal oversight, so the Canada Energy Regulator will now set safety and regulatory rules and review future rate or toll changes.
• Local gas supply: the Project is intended to help meet growing gas demand and improve reliability in Montérégie and Estrie, which can matter for homes, businesses and industry in those regions.
• Conditions and monitoring: the certificate is approved only with specific conditions aimed at environmental protection, safety and emergency response — meaning TQM must follow those measures while operating the assets.
• Costs and rates: approval to add the purchase price into TQM’s regulated rate base could affect how costs are recovered over time (this is a technical regulatory detail that may influence future rates).
• Jobs and local impacts: construction of new compressor and interconnect facilities creates short-term local work, while operations shift to a different regulator and operator.