Page 8 - NorthAmOil Week 15 2021

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Enbridge, TC

Energy upgrading

gas pipelines

NORTH AMERICA CANADIAN pipeline giants Enbridge and TC
Energy are both in the process of upgrading their
gas pipeline networks.
Last week, Bloomberg reported that Enbridge
was moving forward with upgrades to its pipe-
lines serving the US Northeast in a bid to ship
more shale gas from the Appalachian Basin.
The upgrades come as building new pipelines
becomes increasingly more difficult in terms of
permitting and public opposition. Conversely,
expanding capacity on existing pipelines is
becoming a more attractive option under these
circumstances. additions where public, regulatory and political
According to Bloomberg, Enbridge’s plan stakeholders are already familiar with gas deliv-
includes building a connection to a UGI Utilities eries on existing networks.
facility in Pennsylvania and compression boosts The West Path project is anticipated to cost
that will allow it to move an additional 18mn CAD1.2bn ($957mn) in Canada and $335mn in
cubic feet (509,760 cubic metres) per day along the US, and will increase TC Energy’s gas exports
its Texas Eastern system. by about 260 mmcf (7.4mn cubic metres) per
This first phase of upgrades will cost $28mn. day, or 10%.
In a second phase of expansion, the company TC Energy subsidiaries Foothills Pipe
will build similar links for other customers in Lines (South BC), Nova Gas Transmission Ltd
the region. (NGTL) and Gas Transmission Northwest Pipe-
“Boosting compression is the first line line (GTN) are all adding capacity through West
of attack,” Enbridge’s CEO, Al Monaco, told Path.
Bloomberg. “We’ve got some opportunities on The Canada Energy Regulator (CER) has
Texas Eastern, which certainly supports the US already approved a CAD133mn ($106mn), 100
Northeast directly.” mmcf (2.8 mcm) per day Foothills expansion
Monaco also issued a warning about the that is scheduled for completion in 2022. Foot-
impact that opposition to gas pipelines could hills is also seeking approval to add a further
have, citing price spikes in Texas and California. 160 mmcf (4.5 mcm) per day in 2023 at a cost of
Pull quote to go Indeed, Boston had to import LNG this winter CAD402mn ($321mn).
NGTL and GTN are also in the process
because of pipeline capacity constraints during
in here Pull quote periods of high demand in the region. of adding capacity across networks that span
TC Energy, for its part, is adding capacity in Alberta and British Columbia, and serve the US
to go in here Pull annual stages to three of its gas pipelines, with Pacific Northwest and California.
Both TC Energy and Enbridge have been in
quote to go in the upgrade package, known as West Path, set the spotlight as a result of battles to build major
to increase Canadian gas exports to Califor-
here Pull quote nia, Nevada, Oregon and Washington during new pipelines. Indeed, while Enbridge is mov-
ing forward with its Line 3 replacement project,
2022-23.
to go in here Pull TC Energy’s president, Francois Poirier, out- it continues to fight to save its Line 5 pipeline,
quote to go in lined the company’s expansion plans at the vir- whose fate remains uncertain.
tual Scotiabank CAPP Energy Symposium. His
Michigan Governor Gretchen Whitmer is
here. comments came as the company moves forward seeking to shut down the underwater section of
from the failure of the Keystone XL oil pipeline, Line 5 in the Straits of Mackinac, and this par-
which was effectively killed off when US Presi- ticular battle illustrates the fact that long-exist-
dent Joe Biden revoked its cross-border permit ing pipelines are not immune to regulatory and
immediately upon taking office in January. TC political risk. Despite this, quietly expanding gas
Energy has shown no desire to contest Biden’s pipeline capacity on existing networks looks like
decision, and appears instead to be shifting its a comparatively safe bet for Enbridge and TC
attention to quiet growth while seeking to avoid Energy alike. Other North American pipeline
regulatory risk as much as possible. operators may also come to increasingly favour
Poirier described the West Path expansion this quiet approach in the current regulatory and
plans as “in-corridor” and “bolt-on” pipeline political environment.™

P8 www. NEWSBASE .com Week 15 15•April•2021