Facilities – Pipeline
ATCO Gas and Pipelines Ltd. (South) (“ATCO”) applied to the AUC to construct the Pembina Expansion Project, consisting of:
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the installation 10.8 kilometres of 610-millimetre outside diameter (OD) (the “Pembina Loop Pipeline”); and
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the installation of 9.4 kilometres of 610-millimetre OD pipe, in Brazeau County (the “Lodgepole Crossover Pipeline”),
(collectively, the “Project”).
ATCO submitted that the Project would parallel existing linear disturbances for approximately 17.2 kilometres.
ATCO submitted that the Project would connect the existing Pembina Transmission Pipeline through new above-ground valve assemblies located at the Pembina Wye valve site and Pembina Lobstick Control Station, and would connect to NOVA Gas Transmission Ltd.’s Lodgepole Compressor Tie-In. ATCO submitted that the purpose of the Project is to increase the capacity of ATCO’s existing Pembina Pipeline System, carrying sweet gas into the greater Edmonton area. ATCO estimated the total cost of the Project was $66.2 million, and would have a proposed in-service date of November 2016.
The AUC noted that the Project and related facilities would be located on private land within the “White Area” (the central southern, and Peace River areas generally suitable for agriculture) of Alberta, and would thus require a conservation and reclamation (“C&R”) approval from the AER. ATCO submitted that it received its C&R approval from the AER on March 21, 2016, and would comply with the recommendations and mitigation measures set out in the C&R approval.
The AUC held that ATCO’s evidence demonstrated a requirement to meet needed additional system capacity in its five-year supply/demand forecast in order to avoid a natural gas supply capacity shortfall in winter 2016-2017 in the greater Edmonton area. Accordingly, the AUC held that ATCO had demonstrated that there was a need for the Project.
The AUC, in noting that there were no outstanding public or industry objections or concerns, and noting that ATCO committed to comply with the terms and conditions of its C&R approval, held that the Project was in the public interest in accordance with section 17 of the Alberta Utilities Commission Act. The AUC therefore granted approvals to ATCO to construct the Project.
