Canada Energy Regulator Recommends Approval for Westcoast’s Sunrise Expansion to Boost Gas Capacity

The Canada Energy Regulator has concluded its review of Westcoast Energy’s Sunrise Expansion and advised that regulatory authorization should be granted, setting in motion a federal decision process. The scheme would enlarge the pipeline network by roughly 139 kilometres of looped pipebeds and add two short power lines to energize compressor upgrades, producing an estimated 17% increase in natural gas capacity for southwestern British Columbia and the Pacific Northwest market. Regulators judged the plan commercially viable and technically manageable, but attached a suite of 47 conditions designed to govern construction, environmental protection, operational safety and Indigenous engagement through the project lifecycle. The review included a formal hearing sequence spanning about fifteen months from application completeness to recommendation, with milestones in mid-2024 and a hearing order issued in December 2024. Participation funding was allocated to support Indigenous communities’ involvement, including multiple contribution agreements representing several dozen communities and millions of dollars in financial support to facilitate assessments and evidence. More than sixty organizations and communities registered as intervenors, with Indigenous groups forming a substantial share of that representation; oral Indigenous knowledge and Indigenous-led studies were recorded and weighed in the panel’s analysis. The regulator emphasized technical mitigations and monitoring measures as central to its ability to conclude the project can operate within safety and environmental expectations, while acknowledging divergent panel views on specific matters. The practical rationale for the expansion is tied to new demand from the Woodfibre LNG export facility, which is slated to enter service in 2027 and is expected to require increased regional gas flows. The recommendation now advances to the Governor in Council, who will make the final determination under federal law; that step will determine whether the project proceeds to permitting and construction. If the certificate is issued, proponents will need to satisfy the regulator’s conditions before starting major works, and Indigenous and public oversight mechanisms are likely to shape the implementation phase. For regional energy markets, the project represents a near-term capacity increase that could support export and domestic needs, but it also raises questions about long-term climate planning and local environmental impacts that remain part of public debate. The regulator’s report therefore balances economic and reliability arguments against precautionary controls, mapping a pathway that could be contested or modified as the federal decision is resolved.