NEBC Connector Project Certificate Approved

Summary#

An Order in Council dated December 21, 2023 directs the Commission of the Canadian Energy Regulator to issue Certificate OC-067 to NorthRiver Midstream NEBC Connector GP Inc. for the NEBC Connector Project. The project would build two parallel pipelines of about 215 km to move natural gas liquids and condensate; the Commission attached 49 conditions and the government says those conditions must be met.

What it does#

• Directs the regulator to issue Certificate OC-067 authorizing construction and operation of the NEBC Connector Project.
• Approves a project made up of two small-diameter, parallel pipelines of roughly 215 km from near Wonowon, British Columbia to the Gordondale area in Alberta.
• Requires the company to follow 49 conditions set by the Commission. These include rules on environmental protection, monitoring, safety, Indigenous consultation and participation, species-at-risk surveys, and financial responsibility.
• Accepts a cumulative-effects offset package with three parts: payments to the BRFN-BC Restoration Fund, the Treaty 8 Restoration Fund, and a NorthRiver Land Securement Fund (the Commission increased the offset multiplier for the land fund to two-to-one and added other refinements).
• Notes project cost estimated at $350.1 million (2021 dollars) and that about 91% of the route follows existing disturbed land; roughly 61.5% of the route is on private land and 38.5% on Crown land.

Who's affected#

• Producers and shippers in the Montney region who move natural gas liquids and condensate.
• Trucking and rail companies that currently move some of these products; the project is intended to reduce reliance on truck shipments.
• Landowners and communities along the pipeline corridor (private landowners, local governments such as Fort St. John and nearby districts).
• Indigenous groups consulted during the process, including the Blueberry River First Nations and dozens of others on the Crown consultation list (the Crown says it consulted 35 Indigenous groups).
• Wildlife and habitats in the route, including species listed under the Species at Risk Act that prompted required pre-disturbance surveys.
• Regulators and federal departments involved in reviews, such as Environment and Climate Change Canada and the Canadian Energy Regulator.

Why it matters#

• Transportation: The project aims to add pipeline capacity where only one pipeline currently moves these products out of the region. That could reduce truck traffic, ease road congestion, and lower transportation costs for producers.
• Environment and climate: The government and regulator say pipeline transport would cut emissions compared with trucking, and the Commission judged the project “not likely to cause significant adverse environmental effects” if its conditions are met. Still, the project crosses areas with high cumulative environmental effects, so the required mitigation and offset measures are a key part of the approval.
• Local economy and jobs: The company estimated construction could generate about $50.6 million in labour income; operations about $800,000 a year. Direct GDP contribution was estimated at $250.9 million over construction and $4.6 million annually thereafter; annual property taxes are estimated at $1.3 million. The certificate anticipates an economic life of at least 25 years.
• Indigenous rights and consultation: The government accepted the regulator’s finding that consultation and accommodation were adequate and tied many requirements to addressing Indigenous concerns (heritage, land use, monitoring and offsets). How those measures are carried out will affect whether Indigenous groups and nearby communities see the intended protections and benefits.