Pipelines built to carry gas to liquefaction plants – something generally supported by B.C. First Nations – will not be able to be converted to oil pipelines, which most First Nations in B.C. oppose.
The B.C. government announced new regulations Tuesday January 6 that will prevent the kind of conversion that TransCanada Corp. (TSX:TRP) has planned for its Energy East pipeline, which would convert a natural gas pipeline to carry oil to Eastern Canada.
"Many First Nations want to work with the province and proponents on major natural gas pipeline developments, but some have strong and differing views about oil or diluted bitumen pipelines,” John Rustad, Minister of Aboriginal Relations and Reconciliation, said in a press release.
“A regulation prohibiting the automatic conversion of natural gas pipelines for these purposes goes a long way to address the concerns we have heard."
There are six natural gas pipelines proposed for B.C. – all of them to feed LNG plants.
Under new regulations, the BC Oil and Gas Commission will be prohibited from approving conversions that would allow those pipelines to carry oil or bitumen.
The new regulations will apply to the six gas pipelines currently proposed as well as any new ones that might be added.
