497-Mile Prince Rupert Gas Pipeline Faces Compliance Warning from Canadian Regulators
(P&GJ) — The 497-mile (800-km) Prince Rupert Gas Transmission Project, which would transport natural gas from Northeast British Columbia near Chetwynd to Pearse Island, has been issued a formal warning for environmental non-compliance.
Last fall, Senior Compliance and Enforcement Officer Christie Lombardi conducted an inspection and found that Prince Rupert Gas Transmission Ltd. failed to meet Condition 36 of its Environmental Assessment Certificate (E14-06). Violations include not posting signage at environmentally sensitive areas and failing to assess bat hibernacula or roosts before clearing activities.
In a warning letter dated March 6, regulators stated that continued non-compliance could result in fines of up to $1 million for a first offense and $2 million for subsequent violations.
The Prince Rupert Gas Transmission Project, formerly owned by TC Energy, is designed to carry up to 3.6 billion cubic feet per day (Bcf/d) of natural gas to the proposed Ksi Lisims LNG facility on Pearse Island. Originally approved in 2015 to supply an LNG export facility on Lelu Island, the project now requires route amendments and environmental approvals to reflect its revised path.
The Environmental Assessment Office’s Compliance and Enforcement Branch will continue monitoring the project and may conduct further inspections. Additional violations could lead to stricter enforcement measures.
Prince Rupert Gas Transmission Ltd. has not yet issued a public response.
Ownership Transition
In March 2024, TC Energy Corp. agreed to sell the Prince Rupert Gas Transmission project to Nisga’a Nation and Western LNG under a binding letter agreement. The deal included the sale of all outstanding shares and partnership interests in PRGT, which was originally developed as a natural gas pipeline project in British Columbia. The pipeline was seen as a key infrastructure asset to support Canada’s LNG exports.
The sale aligned with TC Energy’s 2024 strategic priorities, which focused on capital expenditure limits, asset value optimization, and financial flexibility.
“This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project,” François Poirier, president and CEO of TC Energy, said. “Enabling LNG development in British Columbia is good for Indigenous communities, our customers, supports the long-term growth of the WCSB and global emissions reduction through the export of responsibly produced Canadian natural gas.”
As part of the agreement, TC Energy committed to providing transition services to facilitate a smooth handover of the project. The transaction was expected to close in the second quarter of 2024, pending definitive agreements and regulatory approvals. While the initial financial impact was minimal, additional payments were contingent on the project's final investment decision and commercial operations.
The Author
Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.
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