The Canadian National Energy Board (NEB) had decided not to move ahead with the reviewing of the $4.8bn (£3.8bn) Coastal GasLink pipeline project, claiming that the project does not fall within its jurisdiction.
The 670km-long gas pipeline project is being developed in British Colombia, Canada, by LNG Canada, which is a joint venture between four major energy companies including Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), KOGAS (5%).
Currently, under construction, the pipeline will initially have a capacity of nearly 2.1 billion cubic feet per day (Bcf/day). It will have scope for future expansion of up to around 5 Bcf/day.
In July 2018, NEB received an application form the environmental consultant Michael Sawyer, regarding jurisdiction over the Coastal GasLink Pipeline project.
Following a hearing that involved 13 active participants, the NEB concluded that the Coastal GasLink project does not fall within its jurisdiction because as it does not form a part of the NOVA Gas Transmission (NGTL) System.
Coastal GasLink is not integral to NGTL
Additionally, the regulator said that the project is not vital or integral to NGTL or any other federally regulated pipeline, and properly regulated by the province of British Columbia.
Primarily regulated by the British Columbia Oil and Gas Commission, the Coastal GasLink Pipeline will transport natural gas sourced from the Montney gas-producing region near Dawson Creek to the LNG Canada export facility currently under construction in Kitimat, British Columbia.
Commenting on the decision, Coastal GasLink said in a statement: “Coastal GasLink is pleased that the National Energy Board found the Project is a local work and an undertaking properly regulated by the province of B.C.
“Coastal GasLink was fully approved and permitted following extensive consultation with local and Indigenous communities, and a rigorous multi-year review that considered potential environmental, economic, social, heritage and health effects.
“We remain focused on continuing to engage in constructive and meaningful dialogue with Indigenous and local communities as we progress preliminary construction on this critical infrastructure project.”
LNG Canada earlier selected TransCanada to own, operate and build the pipeline.
Last year, TransCanada has contracted Aecon Group and Robert B. Somerville for the construction of Spreads 3 and 4 of the Coastal GasLink Pipeline project.
