Construction is now underway on Enbridge’s Sunrise Expansion Program. Federal officials say the $4-billion project will increase natural gas transportation capacity in British Columbia.
The federal government announced Monday that work has begun following regulatory approval earlier this year.
The project will add up to 300 million cubic feet per day of capacity to Enbridge’s Westcoast Pipeline system, which moves natural gas from producing regions in northeastern B.C. to customers throughout the province and the United States.
The expanded capacity is expected to support LNG export projects on the B.C. coast, including facilities that will require significant volumes of natural gas from Northeast B.C. producers.
Enbridge holds a 30 per cent stake in the Woodfibre LNG export terminal under construction in Squamish, B.C.
The Montney formation remains one of Canada’s most productive natural gas plays and is a major driver of employment and investment across Northeast B.C.
While much of the physical construction will occur along the pipeline corridor stretching from southwest of Chetwynd to the Lower Mainland, the economic significance for the Peace Region lies in the increased ability to move Montney natural gas to market.
Enbridge said in the Peace River Regional District, facilities construction is now underway, including clearing, road access work, and preparing foundations for new equipment as well as upgrades and modifications at existing compressor station near Azouzetta Lake.
Over 100 construction workers are expected to be working at peak construction period in this region and will be using a temporary workforce accommodation to be set up in the Pine Pass area.
The MLA for Peace River South said the announcement is a positive step for the region’s economy.
“I welcome this world class investment in the incredible natural gas resource base in Peace River South. Significant investment in our region and the jobs and economic growth that will result are important to the future of our region,” said Larry Neufeld
Enbridge said the company’s focus has now turned to delivering the project safely and responsibly.
“We appreciate the patience and understanding of local residents and communities as we complete this work on this essential energy infrastructure project,” said Ali Hendi, Enbridge director of projects and Sunrise Expansion Program project lead.
According to the Canada Energy Regulator, the project includes approximately 139 kilometres of new pipeline looping, upgrades at existing compressor stations and additional infrastructure designed to expand capacity on the southern portion of the Westcoast system.
One of the planned compressor station upgrades is located at Azouzetta Lake, west of Chetwynd, placing the community near the northern end of the expansion corridor.
Federal officials estimate the expansion will contribute more than $3 billion to Canada’s GDP, create approximately 2,500 jobs and generate about $700 million in tax revenue.
Energy and Natural Resources Minister Tim Hodgson said the project will help meet growing energy demand while creating jobs and expanding trade opportunities.
“This expansion will provide reliable natural gas for homes, hospitals, schools and B.C.’s growing low-carbon energy sector while creating thousands of well-paying careers and new, diverse international trade opportunities,” Hodgson said in a statement.
Industry and government officials say additional pipeline capacity is needed to connect growing gas production with new markets.
For communities such as Chetwynd, Fort St. John and Dawson Creek, the project could support continued drilling, construction, servicing and transportation activity tied to the natural gas sector.
While the federal announcement does not break down regional economic impacts, increased takeaway capacity is widely viewed as critical infrastructure for future growth in the Montney region.
The Westcoast Pipeline System also includes a significant Indigenous ownership component.
Last year, 38 Indigenous communities in British Columbia acquired a 12.5 per cent ownership stake in the pipeline system, supported through the federal government’s Indigenous Loan Guarantee Program.
Enbridge says more than $52 million has already been spent on hiring and procurement involving Indigenous businesses connected to the project.
Construction is expected to continue through 2028, when the expanded system is scheduled to enter service.