August 6, 2008

Oil and Gas Infrastructure

Enbridge begins early planning of $5-billion Gateway pipeline project

Richard Gilbert

staff writer

The largest private infrastructure project in the history of British Columbia is in the early planning stages.

Enbridge Corporation hopes to construct a twin pipeline and marine facility in Kitimat.

The Gateway pipeline project involves the construction of a petroleum export pipeline, a condensate import pipeline and a marine tank terminal to service both pipelines.

Early estimates peg the cost near $5 billion.

“This project has been on the books and underway since 2005,” said Steve Greenaway, vice president of public and government affairs with Enbridge.

“We are now turning our attention back to the Gateway, which we have done since early 2008.”

Enbridge initiated environmental, engineering, public consultation process and land field work to support a possible regulatory application for the Gateway project.

“We are in the pre-regulatory phase and need to establish a proposed pipeline route,” he said.

“We are doing a number of engineering and environmental studies to establish the most appropriate proposed route.”

The petroleum export pipeline will run about 1,150 kilometres from Strathcona County, Alberta to the new marine terminal, where it would be shipped by tanker to China, other Asia-Pacific markets and California.

The import pipeline would transport condensate, a liquid by-product of natural gas, from the new Kitimat marine terminal to Strathcona County.

“We are on a timeline to file our application for regulatory approval in 2009,” said Greenaway.

“If the project is approved, construction will start in 2011 and the completion is scheduled for 2014.”

Construction will take three years and will create about 5,000 jobs.

“The project will create tremendous opportunities for B.C.-based general contracting companies who are interested in excavation and clearing the right of way,” Greenway said.

According to several media reports, Enbridge is planning to expedite the proposed project, due to the mounting criticism in the U.S. about the oilsands.

“There is a strong economic rationale behind the project and we don’t put much credence in discussions surrounding the American election,” Greenaway said.

Print | Email | Comment