NEBC Connector Pipeline Approved

Summary#

This Order in Council (dated December 21, 2023) directs the Commission of the Canada Energy Regulator to issue Certificate OC-067 to NorthRiver Midstream NEBC Connector GP Inc. to build and operate the NEBC Connector Project. The decision follows the Commission’s report of October 18, 2023 and accepts the Commission’s 49 recommended conditions under the Canadian Energy Regulator Act.

What it does#

• Authorizes construction and operation of two parallel small-diameter pipelines about 215 km long. One pipeline would carry natural gas liquids (NGL) and the other condensate.
• Approves the project subject to 49 binding conditions from the Commission’s report. Those conditions cover construction, safety, environmental monitoring, Indigenous engagement, and financial assurances.
• Accepts a cumulative-effects offset plan that includes payments to restoration funds and a land securement component adjusted to a two-to-one offset multiplier.
• Recognizes the project cost estimate of $350.1 million (2021 dollars) and an expected project economic life of at least 25 years.
• Confirms that Crown consultation processes (including hearings) took place and that the Governor in Council considered Indigenous concerns and found they were reasonably accommodated.

Who's affected#

• NorthRiver Midstream NEBC Connector GP Inc. — the project proponent who will build and operate the pipeline if conditions are met.
• Producers in the Montney natural gas region, who would get another route to move NGL and condensate.
• Trucking companies and drivers who currently move NGL/condensate from the region by road; the project is intended to reduce trucking demand.
• Local communities and households near the route, including places that may see tax or economic effects (e.g., City of Fort St. John and regional districts named in the report).
• Indigenous groups whose territories the route crosses, notably Blueberry River First Nations and other Treaty 8 communities (the record also refers to groups such as Doig River First Nation). The Commission and Crown consultation process engaged about 35 Indigenous groups.
• Landowners along the route who may be affected by routing decisions and construction activities.

Why it matters#

• For the region: the pipeline adds permanent transportation capacity for NGL and condensate from the Montney, which proponents say will reduce truck traffic, lower transportation costs, and ease road congestion.
• For the environment: regulators found the project’s direct greenhouse gas contribution would be small, but they also flagged medium residual and cumulative effects on wildlife, fish habitat, and traditional land use. The approval is tied to mitigation, monitoring, and offset measures meant to reduce those effects.
• For Indigenous rights and communities: the project crosses areas with existing cumulative impacts. The decision rests on the Commission’s conditions and the Crown’s view that consultation and accommodation were adequate. Indigenous groups raised concerns about impacts on harvesting, culture, and cumulative loss of access to land and resources.
• For local economies: the proponent estimates construction-related labour income of $50.6 million, annual operation labour income of $800,000, and direct GDP contributions of $250.9 million during construction (the report also lists $4.6 annually over the project life but does not specify the unit for that latter figure).
• Legal and procedural note: this is an approval under the Canadian Energy Regulator Act following a public hearing and environmental assessment process. The project still must meet the Commission’s conditions before and during construction and operation.