Canadian Gas, LNG Needs Drive $1 Billion in Pipeline Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--The rising demand for Canadian natural gas and liquefied natural gas (LNG), both domestically and abroad, is driving the development of pipelines, including entirely new lines and additions to existing systems. Industrial Info is tracking nearly US$1 billion worth of oil and gas pipeline projects across Canada that are set to begin construction before the end of the quarter, more than two-thirds of which is attributed to natural gas pipelines.

Click on the image at right for a graph detailing Canada's oil and gas pipeline projects slated to kick off before the end of June, by parent company.

Among the top spenders in the current quarter is TC Energy Corporation (NYSE:TRP) (Calgary, Alberta), which is supporting the Cedar LNG Export Terminal in Kitimat, British Columbia, with the US$65 million Mount Bracey Natural Gas Compressor Station in Prince George, about 225 miles to the east. TC Energy's station is part of the Coastal Gaslink Pipeline system, a 422-mile line that carries up to 2.1 billion cubic feet per day of natural gas from the Montney Shale to the terminal on Canada's western coast. The Cedar LNG project is a joint venture between Pembina Pipeline Corporation (NYSE:PBA) (Calgary) and the indigenous group Haisla Nation.

The Coastal GasLink Pipeline entered service in fourth-quarter 2024, following years of development. In a recent quarterly earnings-related conference call, Francois Poirier, the chief executive officer of TC Energy, said the company expects to see "a threefold increase in LNG exports" before 2035: "On the natural gas side, there is absolutely demand for more LNG export and market opportunity for us to prosecute. We're very bullish about the prospects for [Coastal GasLink] Phase 2 happening."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the Mount Bracey compressor station and the Cedar LNG terminal.

Alliance Pipeline LP, a joint venture between Pembina and Enbridge Incorporated (NYSE:ENB) (Calgary), is bolstering a 150-mile segment of its mainline system, running from Bethune to Estevan, Saskatchewan, through the construction of a US$55 million compressor station near Bethune. The addition is expected to increase throughput capacity from 1.6 billion to 2 billion cubic feet per day. Subscribers can learn more from a detailed project report.

Earlier this month, Enbridge started construction on US$28.4 million of gas pipeline additions in Chatham, Ontario, as part of the East Gwillimbury Community Expansion Project. The company is installing 22.5 miles of pipe in and around Chatham, to more efficiently carry up to 75 million standard cubic feet per day to areas such as East Gwillimbury, Georgina, and Whitchurch-Stouffville. The project is slated to wrap up in second-quarter 2026. Subscribers can learn more from a detailed project report.

Enbridge also aims to improve its pipeline systems surrounding Toronto, which is Canada's largest city by population. It is proposing an eight-mile, US$21 million line within Hamilton, Ontario, which is just southwest of Toronto on the coast of Lake Ontario. Subscribers can learn more from a detailed project report.

Ontario plans to procure up to 5 gigawatts (GW) of new power over the next decade, through a mix of natural gas, renewable, nuclear and hydroelectric power sources. Michele Harradence, the president of gas distribution and storage for Enbridge, said in a recent earnings call that "natural gas plays a very obvious role" in the buildout: "We're hooking up for power generation in every one of the utilities. I mean, we've probably got a gigawatt and a half that we're supporting right now in Ontario."

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of oil and gas pipeline projects across Canada that are set to begin construction before the end of the quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).