Facilities – Pipeline
ATCO Gas and Pipelines Ltd. (South) (“ATCO”) applied for an amendment to its pipeline licence 16723 pursuant to section 11 of the Pipeline Act and section 4.1 of the Gas Utilities Act for:
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The addition of 18.3 kilometers of 508-millimete outside diameter pipeline; and
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Above ground valve assemblies at the endpoints of the new pipeline,
(the “Inland Loop Pipeline”).
ATCO proposed to build the Inland Loop Pipeline between its existing Norma control station (located at SW-34-053-18 W4M) to its existing Lamont control station (located at SE-5-055-19 W4M). ATCO submitted that the Inland Loop Pipeline would increase capacity on ATCO’s existing Inland transmission system, carrying sweet natural gas into the Fort Saskatchewan and Edmonton areas.
ATCO proposed to begin construction for above-ground valve assemblies in June of 2016, and that the total value of the capital addition of the Inland Loop Pipeline would be approximately $388 million, based on its preferred route and configuration.
ATCO noted that it had identified the Inland Loop Pipeline as its next expected capacity expansion project in its 2013/2014 general rate application. ATCO submitted that the Inland Loop would maximize available supply from NOVA Gas Transmission Ltd.’s (“NGTL”) North Lateral pipeline, east of Edmonton.
ATCO also noted that it submitted conservation and reclamation (“C&R”) application for the Inland Loop Pipeline to the AER in September 2015. The AER approved the C&R application on March 29, 2016.
ATCO submitted that it completed consultation and notification activities in respect of the Inland Loop Pipeline pursuant to AUC Rule 020: Rules Respecting Gas Utility Pipelines (“Rule 20”). ATCO submitted that there were no outstanding concerns or objections from stakeholders.
The AUC held that the Inland Loop Pipeline met the requirements of Rule 20 pertaining to public consultation, and noted that there were no outstanding public or industry objections or concerns.
The AUC determined that the Inland Loop Pipeline was required to meet additional system capacity to avoid a natural gas supply shortfall by the winter of 2016-2017 in the Edmonton area. The AUC also noted that the need for the Inland Loop Pipeline was approved in Decision 3577-D01-2016.
The AUC determined that the Inland Loop Pipeline was in the public interest pursuant to section 17 of the Alberta Utilities Commission Act. The AUC therefore approved the amendment to ATCO’s licence 16723 to construct the Inland Loop Pipeline.
