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Coastal GasLink pipeline not subject to federal regulation

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LNG Industry,

According to Reuters, Canada’s National Energy Board (NEB) has announced that the proposed Coastal GasLink pipeline is not subject to federal regulation.

According to Reuters, last year, the NEB was sent an application from environmental consultant Michael Sawyer, who claimed that B.C. did not have jurisdiction to approve the pipeline. This is because it will link to the NGTL pipeline system in Alberta, transporting gas over the border. In Canada, Reuters claims that interprovincial pipelines fall under federal regulation. The Coastal GasLink pipeline has been approved, and is being regulated by the British Columbia Oil and Gas Commission.

However, according to Reuters, the NEB has stated that the pipeline does not fall under its jurisdiction, due to the fact that it “does not form a part of the NOVA Gas Transmission Ltd (NGTL) system, and is not vital or integral to it or any other federally regulated pipeline.”

This means that TC Energy Corp.’s 670 km pipeline will not have to submit a new application for approval, and reduces the risk of further regulatory scrutiny leading to delays in construction.

Once the gas pipeline has been constructed, it will stretch from Dawson Creek, which is located in northeastern British Columbia (B.C.), to the CAN$40 billion LNG Canada facility, which is located near Kitimat.

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