Canada’s NEB approves Nova Gas’ $986m system expansion project in Alberta

Canada’s regulator the National Energy Board (NEB) is recommending that the federal government approve Nova Gas Transmission’s (NGTL) C$1.29bn ($986m) system expansion project in northern Alberta.

NGTL is a wholly-owned subsidiary of TransCanada.

In its final report, NEB listed 48 conditions required to be fulfilled by NGTL before the project moves ahead.

Five of the conditions are related to the protection and restoration of caribou habitat.

The project is set to run through three boreal woodland caribou ranges, which are listed as threatened on Schedule 1 of the Species at Risk Act.

NEB granted intervenor status to 37 groups and individuals, and heard traditional evidence from six indigenous groups in Fort McMurray, Grande Prairie and Edmonton, Alberta in 2015.

Seven groups were granted commenter status.

The board has submitted its report with its recommendation to the Minister of Natural Resources Canada, as required by federal law.

NGTL applied to the board on 31 March 2015 to construct and operate about five pipeline section loops totalling 230km and two compressor station unit additions in northern Alberta.

More than 90% of the project will come up on provincial crown lands and would parallel existing linear disturbances, such as pipelines and roads.

The project is expected to generate C$800m ($611m) in labour income at the time of construction, and C$1.2bn ($917m) in gross domestic product in Canada.

The 23,500km NGTL pipeline system gathers natural gas for use in Alberta, as well as to deliver it to provincial border points for export to North American markets.

It collects 66% of the natural gas produced in Western Canada and is set to become operational on 1 April next year.