Project was once touted as a key supply route for LNG export terminals near Prince Rupert
The Canadian pipeline giant on Tuesday said it is no longer developing its Westcoast Connector Gas Transmission (WCGT) project after allowing its environmental certificate to expire on Nov. 25.
“This was a business decision based on an assessment of the project’s viability,” a spokesperson for the company said in an email. “We appreciate all those communities and Indigenous groups who supported this project and look forward to maintaining those relationships and working together on other opportunities in B.C.”
Though technically approved in 2014, PRGT still faces a couple of regulatory hurdles. The project’s proponents are seeking approval from the B.C. regulator to change and shorten the pipeline’s current proposed route to terminate at the Ksi Lisims LNG site on Pearse Island.
PRGT was also required to be “substantially started” by Nov. 25 or its environmental assessment certificate would expire. The backers of the project have said that work began in August on the pipeline where it crosses Nisga’a territory, but the B.C. Environmental Assessment Office will make an official determination next spring in a report that will be provided to the province’s new Environment Minister, Tamara Davidson.
While WCGT won’t go ahead, Enbridge continues to expand its BC Pipeline system and is in the midst of a previously announced multi-billion-dollar expansion of its T-North and T-South systems. It also owns a 30 per cent stake in the approved Woodfibre LNG project currently under construction near Squamish, B.C.
Enbridge, in its 2025 financial guidance released on Tuesday, forecasted adjusted earnings before interest, taxes and depreciation (EBITDA) of between $19.4 billion and $20 billion next year. This year’s EBITDA will finish near the top end of its forecasted range of $17.7 billion to $18.3 billion.
The company said it expects capital expenditures next year to reach roughly $7 billion, excluding maintenance.
“Year-to-date, we have added $7 billion of new capital to our secured growth backlog and announced approximately $1 billion of highly strategic, accretive tuck-in acquisitions,” chief executive Greg Ebel said in a statement. “Our financial guardrails of 4.5x-5x debt-to-EBITDA and 60-70 per cent (discounted cash flow) payout remain firmly in place, and we anticipate tailwinds to these metrics through the balance of our outlook.”
The company will also hike its dividend starting March 1 to $3.77 per share from $3.66 currently.
“Global oil consumption has rebounded to all-time highs and increasing natural gas demand is being driven by LNG growth, coal-to-gas switching and the rapid increase in electric power demand stemming from new datacenter developments,” Ebel said. “As the world navigates a dynamically shifting macro backdrop, Enbridge will continue to play a leading role delivering safe, reliable and affordable energy.”