Spectra Energy returned to Burns Lake on Feb. 20, 2014 to update the Regional District of Bulkley Nechako (RDBN) about its progress to date on the proposed Spectra Energy/BP Group natural gas pipeline proposal.
A little more than one year ago, Spectra held a similar meeting to announce its plans to transport natural gas from the Fort Nelson and Fort St. John area to a proposed liquefied natural gas terminal to be built by the BG Group - Spectra’s partner in this project - on Ridley Island near Prince Rupert.
At the time, Spectra was in a very preliminary position. So preliminary in fact, the project didn’t yet have a name.
Since then, the project has been christened the Westcoast Connector Gas Transmission project, and Spectra has almost completed its B.C. environmental assessment application. They expect to submit it for provincial evaluation before the end of March, 2014.
Franca Petrucci, Spectra Energy coordinator for community development and aboriginal relations, was at the regular Feb. 20 RDBN board meeting to bring RDBN directors up to speed with the project.
Several pipeline proposals have been floated to connect either natural gas from Northeastern B.C., or modified bitumen from Northern Alberta, to B.C.’s west coast.
The Spectra proposal is the most northernly of the proposed routes, heading dead west of Mackenzie, north of Takla Lake, and on through Cranberry Junction before heading southwest through Nisga’a First Nation territories and into underwater gas lines near the Alaska/B.C. border before reaching proposed liquefaction plants near Prince Rupert.
A 2012 report from RDBN financial administrator Hans Berndorff anticipated up to $1.35 million in annual tax dollars from the Spectra project alone between the RDBN, the Stuart-Nechako Regional Hospital District, and the Northwest Regional Hospital District.
Pipeline construction would create 4000 temporary jobs, Petrucci said, and leave behind approximately 60 long-term jobs associated with pipeline and pump station maintenance and monitoring.
Construction is still at least two years away, but Spectra is already developing a vendor database at www.energyforbc.ca/work-with-us.
“We want to contribute to local economies as much as possible,” Petrucci said. “About six months ago we hired a full-time technical workforce development manager. Her role is solely attached to this proposed pipeline and she has developed the vendor registry database.”
Submitting the environmental assessment application would begin the 180-day countdown for B.C. environmental assessment office (EAO) to decide whether or not to issue an environmental assessment certificate (EAC).
Approval from the EAO would be one of the most significant green lights needed for the project to go ahead. Following that, the B.C. Oil and Gas Commission would still need to weigh in on the proposal.
Even if all approvals fall into place, a final decision to commit resources to the project would need to be made by both partners (BG Group and Spectra Energy) before any shovels hit the dirt.
“We are expecting to make a final investment decision in 2016,” Petrucci said. “If the two partners decide it is positive, we would start construction shortly thereafter with the hope of being in service by the end of the decade.”
Last week’s First Nations LNG summit in Fort St. John highlighted the importance of First Nation participation in any proposed pipeline project which crosses multiple First Nation territories.
Carrier Sekani Tribal Council was and active participant in those talks, and the RDBN has been following the development of relations between pipeline companies and First Nations.
“The RDBN shares many of Carrier Sekani Tribal council’s concerns surrounding LNG development,” said RDBN chair Bill Miller.
Petrucci said Spectra has a good working relationship with First Nations along the pipeline route.
“We recognize the unique cultural and historical characteristics of aboriginal people and their connections to the land,” Petrucci said. “We are working with all First Nation communities. They want to deal one-on-one with our company, so that is what we’re doing.”
Another concern aired whenever resource projects are brought to the table which will see merchantable timber removed form the landbase. The Spectra proposal, Petrucci said, will follow existing right-of-ways where ever possible.
Although some pile burning will be unavoidable, Spectra has a timber harvest regime in place.
“We will harvest where we can harvest, and we will pay a stumpage rate,’ Petrucci said. “There will be some we won’t be able to salvage, but we are working with First Nations and salvage operators to salvage what we can’t. We want a limited footprint. Our priorities are safety and minimal environmental impact.”
Spectra’s application is for a right-of-way that could accommodate two pipelines, although only one is currently proposed for construction. This was done, Petrucci said, in anticipation of future demand.
“Two 48 inch pipelines could [eventually] move up to 8.4 billion cubic feet of gas per day,” Petrucci said. “We are anticipating up to five compressor stations along the route.”
The current proposal is for one 850 kilometre 48 inch pipeline that can deliver up to 4.2 billion cubic feed of natural gas per day. Spectra Energy, with headquarters in Texas, has been operating in B.C. for 55 years.
Existing Spectra natural gas transportation systems in B.C. move approximately 2.4 billion cubic feet of natural gas per day - enough to heat 10 million homes for a year - and employ more than 850 people in B.C.
According to a Spectra Energy fact sheet, the company pays nearly $65 million in property taxes, and contributes $1 million per year to community projects. A recent $1.5 billion expansion project in B.C. (the Fort Nelson north processing facility project) has created more than 1350 construction jobs, along with $120 million in contracts with First Nation and local contractors.