Frequently Asked Questions
What are Pipelines?
What is the Northern Gateway Pipeline?
What is the impact of this project?
What are Pipelines?
A pipeline comprises all parts of the physical facility through which liquids (crude oil, petroleum products) or gases (natural gas, carbon dioxide) are transported including pipe, valves and other equipment attached to the pipe, compressor units, pump stations, metering stations, regulator stations, delivery stations, holders and fabricated assemblies.
Pipelines are the safest and most efficient means of transporting crude oil and natural gas from producing fields to refineries and processing plants and of distributing petroleum products and natural gas to the consumer.
What is the history of pipelines in North America and Canada?
The first gathering systems in North America were constructed of hollow logs and were used to transport natural gas short distances from well sites to nearby towns. Distribution systems were also constructed to deliver the natural gas to buildings and street lights.
In the early 1900s, there were only a few transmission pipelines in Canada. One ran from oil fields in Ohio to refineries in the Sarnia area. Another ran from Bow Island to Calgary, and at 270 kilometres (168 miles), was the longest pipeline in Canada at its completion in 1912.
During WWII, because of security concerns, oil pipelines were built from Portland, Maine to Montreal, and from Norman Wells, Northwest Territories to Whitehorse, Yukon. The latter, known as the Canol Pipeline, was only used for about a year, while the former is still in use.
Major discoveries in Alberta during the 40s and 50s, such as Leduc, Pembina, and Swan Hills, spurred construction of the Interprovincial Pipe Line (now Enbridge Pipelines Inc.) crude oil pipeline from Edmonton to Superior, Wisconsin in 1950, and on to Sarnia in 1953.
The Trans Mountain Pipeline now owned and operated by Kinder Morgan Inc. was also completed in 1953 to transport crude oil from Edmonton to Vancouver.
The Westcoast Pipeline (now owned and operated by Spectra Energy Corp.) began transporting natural gas from northeast British Columbia to the B.C. U.S. border in 1957.
Construction of the TransCanada Pipeline began in 1957 to provide a secure source of natural gas for Central Canada. It was completed the following year. Also in 1957, TransCanada’s Alberta System, referred to as NGTL or NOVA, began operation.
As demand grew, these pipelines were expanded and additional routes were opened to carry Canadian crude oil and natural gas to markets in California, the Pacific Northwest, the Rocky Mountain States and the Midwest United States.
The Maritimes and Northeast Pipeline was constructed in 1999 to connect the gas fields off the Canadian east coast with markets in Nova Scotia, New Brunswick, Maine and Massachusetts.
The Alliance Pipeline system began operation in 2000, transporting natural gas from northeastern British Columbia and northwestern Alberta through Saskatchewan, North Dakota, Minnesota, and Iowa to its terminus in Illinois.
What is the role and importance of pipelines?
According to the Canadian Association of Petroleum Producers, Canadians consumed 256,444 cubic metres (1.61 million barrels) of crude oil and petroleum products and 207.4 million cubic metres (7.3 billion cubic feet) of natural gas per day in 2009. Combined, crude oil and natural gas accounted for 68 per cent of Canada’s primary energy consumption.
Because crude oil and natural gas fields are often far from refineries and processing plants, and farther still from consumers, pipelines are necessary to transport raw materials from their source to refineries and gas processing facilities and then to market.
While other forms of transportation are available, pipelines provide a safe, economical and constant flow of crude oil, natural gas and petroleum products.
Are there different types of pipelines?
There are three major types of pipelines use to transport hydrocarbons, defined by throughput: crude oil pipelines, natural gas pipelines and product pipelines.
Where are most pipelines located?
Producing fields are generally thought of as being in remote areas some distance from population centres; however, some producing fields are adjacent to or underlie cities such as Calgary, Red Deer and Medicine Hat. Consequently, gathering systems can run beneath wilderness areas, farmland and cities and towns.
A pipeline’s location can be determined either by above-ground warning signs or the right-of-ways in which the pipelines are buried.
Who operates and owns pipelines?
There are three main types of pipeline operators:
- Oil and gas producers, such as BP Canada and others, operate the gathering systems that transport crude oil or natural gas from the wellhead to gas processing plants. Either the producers or the pipeline companies operate the pipelines from the gas plants to the larger lines that feed into trunk lines. Some producers also operate larger lines that feed refiners and processing facilities.
- Pipeline companies such as Enbridge Pipelines Inc., TransCanada PipeLines Limited and Kinder Morgan Canada Inc., operate pipelines that transport oil and natural gas throughout North America. These companies are not involved in other aspects of the oil and gas industry, such as exploration, production or refining.
- Distribution companies such as ATCO and Enbridge distribute petroleum products to dealers and natural gas to homes, industrial and commercial facilities.
What are pipelines safety track record?
Pipelines in Canada have the best track record for safety than other modes of transportation used to move energy products, such as marine shipping, railway and truck transport.
How much product is carried by pipelines in Canada?
Approximately 2.7 million barrels of crude oil and equivalent per day travel through Canada’s crude oil pipeline network. Approximately 15.1 billion cubic feet of natural gas per day travel through Canada’s natural gas pipeline network.
What is the Northern Gateway Pipeline?
What is the project?
The Enbridge Northern Gateway Project represents a multi-billion dollar investment in northern British Columbia and Alberta that will result in direct and indirect employment, job skills development and significant tax revenue.
Who is undertaking the project?
Enbridge Pipelines has been building, operating and maintaining liquid pipelines for over 60 years, and gas lines for more than a century. In Canada and the U.S., they operate the world’s longest petroleum and liquids pipeline system. Enbridge moves more than two million barrels of petroleum products through their pipeline system each day.
Where is the pipeline located?
The Enbridge Northern Gateway Project involves a new twin pipeline system running from near Edmonton, Alberta, to a new marine terminal in Kitimat, British Columbia to export petroleum and import condensate. Click to view pipeline map.
What are the specifications of the pipeline?
Oil Pipeline
- 1,177 km in length
- 914 mm (36 inch) diameter
- Westerly flow
- Transport oil from Bruderheim, Alberta to Kitimat, British Columbia
- Capacity of 525,000 barrels per day
Condensate Pipeline
- 1,177 km in length
- 508 mm (20 inch) diameter
- Easterly flow
- Transport imported condensate from Kitimat to Edmonton area
What is the Marine Terminal?
Located in Kitimat at the end of the Douglas Channel, one of the widest and deepest inland waterways on the West Coast, the Kitimat Terminal is comprised of a tank terminal and a marine terminal including two tanker berths and one utility berth.
The terminal specifications are:
- Two mooring berths
- Total of 14 storage tanks for oil and condensate, potential for two additional tanks
- Radar monitoring station
- First response capabilities
- A model of world-class safety and environmental standards
What is the impact of this project?
Why is this project important to Canada?
The Northern Gateway Project will help to diversify Canada’s energy customers moving from the current situation of the U.S being Canada’s only customer. This project will open Asian markets to the Canadian economy and further enhance Canada in the long term.
The benefits associated with the construction and operation of the project over a 30 year operating period include:
- $81 billion in government revenues (provincial and federal)
- $5.7 billion in labour income (or an average of $174 million annually) with a PV of $2.6 billion
- $5.5 billion in government revenues (or an average of $167 million annually), with a PV of $2.7 billion
- Over 68,000 person years of employment.
- $270 billion contribution to GDP over 30 years
While these are significant, substantially larger impacts can be expected as a result of the price uplifts anticipated to result from the operation of Northern Gateway. Over the period to 2045, these would directly increase GDP by about $100 billion such that the total GDP impact would amount to $128 billion (that is, $28 billion from the construction and operation of the project and an estimated price uplift of $100 billion).
*Monetary values measured in year 2009 Cdn $.
From “Public Interest Benefits of the Northern Gateway Project” by Wright Mansell Research Ltd.
Why is this project important to British Columbia and Alberta?
The economic opportunities for this project are significant. Total local, provincial and federal government tax revenues during 30 years of operations will be approximately $2.6 billion; this includes about $36 million per year estimated to be paid by Northern Gateway as local property taxes.
Northern businesses will benefit by providing services, supplies and materials to the project during the three years of construction.
Why is this project important to Canadian workers?
It is estimated that about 5,500 person-years of on-site employment will be created during the construction phase in BC and Alberta providing opportunities to learn new skills and start new careers. In addition, about 1,150 long-term jobs will be created to operate the pipelines and marine terminal.
What is the environmental impact of this project?
Environmental regulation involves both assessment of environmental impact of projects prior to their approval and construction, and environmental audits while they are operational.
Environmental regulation can be extremely complex, involving a number of regulatory agencies at both federal and provincial levels. Fortunately, many of these agencies have signed agreements regarding interjurisdictional cooperation.
An environmental assessment:
- identifies possible environmental effects,
- proposes measures to mitigate adverse effects, and
- predicts whether there will be significant adverse environmental effects, even after the mitigation is implemented.
There are two main purposes of environmental assessment:
- minimize or avoid adverse environmental effects before they occur, and
- incorporate environmental factors into decision making.
What is the impact of the project to Aboriginal populations?
Access to land can be a complex matter due to a wide range of issues including the unique rights of First Nations, Inuit and Métis communities. Aboriginal and Treaty rights are still being defined in the courts because of historical treaty misunderstandings, unsettled land claims and disputes over jurisdiction on lands that have been traditionally used by Aboriginal peoples.
Although some of these issues can only be addressed through political or judicial processes, pipeline operators are working with Aboriginal communities to mitigate concerns about the impact of pipeline development on traditional Aboriginal economies, the physical attributes of the environment and the social health of Aboriginal communities.