Enbridge Inc. (TSX:ENB) is moving to expand its network of natural gas pipelines in northern British Columbia in a move that would boost supply of the fossil fuel across B.C., Alberta and the U.S. Pacific Northwest.
In a presentation to investors Tuesday, the Calgary-based oil and gas company said the Birch Grove project is expected to increase the total capacity of the T-North section of the B.C. pipeline by around 179 million cubic feet a day. The $400-million expansion will drive a pipeline into B.C.’s Montney shale basin and is expected to come online by 2028.
The announcement came the same day U.S. President Donald Trump's administration imposed a 25 per cent tariff on most Canadian goods, and a 10 per cent tariff on its energy products. On Wednesday, Washington said it would put a one-month pause on tariffs applied to vehicles coming into the U.S. from Canada and Mexico.
The tariffs have prompted a number of Canadian oil and gas proponents to call for an expansion of fossil fuel projects. Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, called for an urgent policy overhaul to allow viable projects to proceed.
She said diversifying exports into Asia and Europe would promote long-term stability, and that securing Ontario and Quebec's energy supply must be a national priority as well.
"We are at a significant moment in Canada's history — we need to seize this moment," she told the Canadian Press.
"The choices we make today will determine whether we become a global energy leader or continue to fall behind."
Critics, however, say doubling down on expanding oil and gas export infrastructure would be a mistake.
Tracey Saxby, executive director of the environmental group My Sea to Sky, has long opposed the construction of more fossil fuel infrastructure. That includes the Enbridge-backed Woodfibre Liquified Natural Gas (LNG) export terminal slated for construction near Squamish, B.C.
Saxby said building out more pipelines is a “poor response” to the current trade and climate crises that together should prompt governments to foster diversifying Canada’s energy sources.
“It’s very clear that the oil and gas industry is trying to use this moment to make very big gains,” she said. “But we need to ensure that we have the ability to provide gas to British Columbians in the future.”
“If we’re going to continue to expand pipelines and export gas really quickly, we don’t have it for ourselves.”
Meanwhile, the CEO of Enbridge, whose company on any given day is the largest-single conduit for crude flowing by pipeline to the United States, said the tariffs aren't likely to change the firm’s near-term strategy or outlook.
"It would take a very long time of sustained tariffs before you see changing trade patterns and flow patterns," Greg Ebel told reporters following a presentation to investors in New York.
Enbridge transports about 30 per cent of the crude oil produced in North America and almost two-thirds of U.S.-bound Canadian oil exports. It accounts for 40 per cent of total U.S. crude oil imports.
The company also announced a $2-billion investment in its massive Mainline system, which connects oil sands crude to U.S. markets throughout the Midwest.
— With files from the Canadian Press
