Pipeline Expansion Battle Heats Up in British Columbia

Strategic Insights -

A billion-dollar battle is unfolding in British Columbia as Westcoast Energy Inc. and BC Gas Inc. clash over the expansion of the province's pipeline network. Westcoast, the province's monopoly gas transmission company, is accusing BC Gas of using scare tactics to block its $284 million expansion application. The National Energy Board is set to review the application, which would increase gas prices for British Columbia consumers. Meanwhile, BC Gas claims that Westcoast's expansion will lead to increased prices for gas buyers, estimating an additional $17 per year.

Key Takeaways:

  • Westcoast Energy Inc. is seeking approval for a $284 million pipeline expansion project in British Columbia, which would increase gas transmission capacity to the US Pacific Northwest and central Canada.
  • BC Gas Inc. is opposing the expansion, arguing that it will lead to increased gas prices for consumers, with estimates suggesting an additional $17 per year per gas buyer.
  • Westcoast disputes this claim, stating that it offers unbundled services, which means BC Gas does not need to contract for gathering and processing services from Westcoast.
  • The National Energy Board will review Westcoast's application, which also includes a second postponed project worth $480 million at Tumbler Ridge in northeastern British Columbia.
  • Westcoast estimates that BC Gas's opposition to the expansion could jeopardize over $1 billion of investment in British Columbia.

Statistics:

  • The estimated cost of Westcoast's pipeline expansion project: $284 million
  • The estimated annual increase in gas prices for consumers: $17
  • The estimated value of investment at risk due to BC Gas's opposition: over $1 billion
  • The estimated cost of the second postponed project at Tumbler Ridge: $480 million
  • The estimated location of the pipeline expansion projects: northeastern British Columbia and Tumbler Ridge

Sources:

  • "Mudslinging begins in B.C. pipeline war", The Globe and Mail (no date provided)
  • "BC Gas opposed to Westcoast Energy pipeline expansion", The Vancouver Sun (no date provided)