Proposed TC Energy pipeline expansion faces pushback from three U.S. states

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TC Energy Corp. is again facing pushback against a proposed pipeline project, this time from three U.S. states seeking to block plans to expand a pipeline carrying Canadian natural gas to customers in the Pacific Northwest and California.

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In a joint filing to the U.S. Federal Energy Regulatory Commission, the attorneys general of California, Oregon and Washington urged the regulator to deny TC Energy’s application to increase capacity of the Gas Transmission Northwest (GTN) pipeline by an estimated 150 million cubic feet per day. The 2,216-kilometre pipeline transports natural gas from Alberta and British Columbia to Malin, Oregon.

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“Expanding the capacity of this pipeline would have significant environmental and public health impacts and is out of step with state and federal climate goals — and (the Federal Energy Regulatory Commission) can’t honestly say otherwise,” Rob Bonta, California’s attorney general, said in a statement.

The Aug. 22 filing was made just days before California’s grid operator declared a state of emergency Wednesday, with the state narrowly avoiding blackouts amid extreme heat and drought conditions that have crippled hydropower supplies. Demand for electricity in California has reached some of the highest levels in years and is expected to remain elevated over the long weekend as residents crank up air conditioners to cope with forecasted temperatures above 37 degrees Celsius on Sunday in parts of interior California.

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Just over 33 per cent of California’s electricity generation comes from renewable sources and around 38 per cent is supplied by natural gas, according to 2021 data from the state.

TC Energy has said the GTN expansion is necessary to meet increased demand from customers in the region.

“The strong demand for natural gas pipeline capacity in the region, which (the expansion) will provide, was reaffirmed when GTN secured long-term agreements with customers for 100 per cent of the project capacity,” TC Energy said in a statement. “This further demonstrates the need for secure energy to supplement renewables as we work toward a cleaner energy future.”

However, the states have challenged TC Energy’s assertion that the expansion is needed to meet heightened demand. In the filing to the regulator, the states counter the project will primarily serve the interests of Canadian gas producers in gaining market share.

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The states further dismissed the long term contracts inked for the proposed capacity increase, arguing in the filing that regional gas consumption is likely to decline in the coming decades as renewables and electrification increase.

“The project conflicts with state laws to reduce emissions and transition to renewable energy, and it will worsen environmental harms from climate change by locking in over 3.47 million metric tons of carbon dioxide equivalent (CO2E) emissions per year for at least the next 30 years,” the report said.

TC Energy’s proposal would involve upgrading compressor stations in Athol, Idaho, Starbuck, Washington and Kent, Oregon. Idaho has not signed onto the joint filing opposing the project.

If approved by the regulator in October, construction on the project would begin in the spring and the expanded pipeline could be in service by November 2023.

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