Ottawa approves $4B natural gas pipeline expansion in British Columbia

The Government of Canada has approved a major natural gas infrastructure project in British Columbia aimed at increasing supply and supporting exports.

Minister of Energy and Natural Resources Tim Hodgson said the Sunrise Expansion Program will move ahead, allowing for a $4-billion upgrade to Enbridge’s Westcoast pipeline system.

The project is expected to add up to 300 million cubic feet per day of capacity to the province’s main natural gas transmission network. Officials say the additional supply will be used to heat homes and businesses, support industrial activity, and help meet demand tied to future export developments.

Among those developments is Woodfibre LNG, which has been described as a net-zero LNG facility currently under development.

Construction on the expansion is expected to begin this summer. The federal government says the project will create about 2,500 jobs at peak construction and generate more than $700 million in tax revenue for federal and provincial governments.

Ottawa also says the expansion could contribute more than $3 billion to Canada’s gross domestic product by improving access to overseas markets, particularly in Asia, as part of a broader effort to diversify trade.

The government says the project will proceed under existing environmental standards and with consultation involving Indigenous communities.