Pipeline company locks in full capacity and a $3 billion GDP boost as Canada tries to speed builds
Ottawa has handed Enbridge Inc. a $4bn test of how quickly Canada can now move major energy projects from approval to in-service.
According to an Enbridge statement, the federal government has approved the Sunrise Expansion Program, a $4bn natural gas expansion of Enbridge’s Westcoast pipeline system in British Columbia.
The Westcoast system currently moves 3.6bn cubic feet of gas per day from fields in northeastern BC and northwestern Alberta to the Canada–US border, and Sunrise will add 300m cubic feet per day of capacity.
Enbridge said that the project will install almost 140 kilometres of new pipe in 11 looping segments alongside the existing line, and add compression and upgrades at existing facilities.
Enbridge said construction is scheduled to begin in July 2026 with a targeted in-service date in late 2028, while BNN Bloomberg reported construction is expected to begin this summer, with startup also targeted for late 2028.
All of the new transportation space is already contracted.
Natural Resources Minister Tim Hodgson said the approval is part of an effort to “get more projects moving, faster.”
In a Toronto speech reported by the same outlet, he argued that “seriousness is not measured by how long a country takes to make decisions,” but by whether decisions are “thoughtful, credible and made in a timeframe that actually matters.”
He said Sunrise will increase supply for heating buildings, supply gas for power generation and industrial and manufacturing processes, and ensure enough LNG supply.
Hodgson said the project will add more than $3bn to Canada’s GDP and support about 2,500 jobs at peak construction.
According to CBC News, He added that by spring 2027 he expects more projects in the major projects office and at least five to 10 new projects reaching final investment decision or breaking ground.
Enbridge calls Sunrise “a shovel-ready, critical natural gas infrastructure project that supports the advancement of Canada’s energy superpower ambitions,” in the words of CEO Greg Ebel in the company’s release.
The company said gas on the Westcoast system heats homes, hospitals, businesses and schools, and supports power generation, industrial activity across BC and global LNG exports.
According to BNN Bloomberg, Matthew Akman, Enbridge’s executive vice-president and president of gas transmission and midstream, told reporters that gas on the expanded line is not tied to any specific market, but “some of the capacity will no doubt go offshore.”
Reuters reported that Akman noted the regulated decision timelines for Sunrise “all occurred as anticipated,” which he said “is not always been the case in Canada.”
Akman also said Canada must move even faster if it wants to compete in global energy and LNG.
He argued that regulators can maintain “just as rigorous” consultation, environmental review and community engagement “but do it faster,” as reported by BNN Bloomberg.
He stressed that Enbridge has been working on the project for almost four years “and still don’t have a shovel in the ground.”
He added that Enbridge operates on both sides of the border and “from our experience… the US is moving faster,” while returns on capital have recently been better there.
Indigenous ownership is already part of the capital stack.
Enbridge reported that last year Enbridge agreed to sell a 12.5 percent stake in the existing Westcoast pipeline to the Stonlasec8 Indigenous Alliance for $715m, backed by a new federal loan programme.
BNN Bloomberg said those same Indigenous groups are not obliged to invest in the expansion but have an option to do so.
Enbridge added that it has already spent more than $52m on hiring and procurement from Indigenous businesses and expects to hire about 2,500 workers during construction, including people from local communities and Indigenous groups.
Politically, CBC News reported that Prime Minister Mark Carney campaigned on building “big and fast” in response to US tariffs and protectionism.
The same outlet quoted analyst Heather Exner-Pirot describing the $4bn spend as “table stakes” in the wider energy system but an “easy” win for the Carney government because it involves natural gas, construction jobs in BC and Indigenous support.
The decision has also drawn criticism.
According to BNN Bloomberg, Alex Walker of Environmental Defence Canada called Ottawa’s move “a disastrous climate decision that prioritizes fossil fuel industry growth over Canada’s climate commitments.”
