IN THE NEWS / B.C. Gas Plans To Reapply For Southern Line
Vancouver Sun
B.C. Gas Inc. said Friday it will apply again next week with the provincial energy regulatory agency to build a $350-million natural gas pipeline across southern British Columbia.
But the head of Westcoast Energy Inc., which owns and operates the pipeline that
carries natural gas from northeast B.C. to the Vancouver area and U.S. border,
says consumers will lose if the application is approved.
"I haven't seen what B.C. Gas is filing but if it's anything like last time, it isn't
necessary and it should undergo a full public hearing," Westcoast president Art
Willms said.
"It is very expensive and will be built on the backs of residential and commercial
customers."
Willms said it would cost each residential and commercial customer an average of
$100 a year.
B.C. Gas official Cam Avery dismissed the criticism.
"Mr. Willms is singing the same old song that they sang throughout the last hearing
and it is up to the B.C. Utilities Commission to decide if it is in the best interests of
electric and gas customers," said Avery.
"We obviously believe it is."
B.C. Gas is reapplying to the commission because it says B.C. Hydro has agreed to
contract firm capacity on the proposed Southern Crossing pipeline and to provide
B.C. Gas with natural gas at peak demand times.
Avery said other parties have also contracted to take firm capacity on the pipeline.
"Details are confidential until B.C. Hydro's board of directors approves the
agreement," Avery said.
Southern Crossing is a proposed 300-km pipeline from Yahk in the East Kootenay
to Oliver in the south Okanagan, where it will connect with an existing pipeline to
the Vancouver area.
B.C. Gas says it needs the pipeline to meet growing natural gas demand in the
Vancouver area.
But the commission rejected the proposal last April, saying it was concerned about
B.C. Gas making such a large capital investment to serve a seasonal demand.
It also rejected a competing proposal by Westcoast to build a $100-million
liquefied natural gas plant 10 km northeast of Port Mellon on Howe Sound to meet
peak demand.
B.C. Gas, which distributes gas to residential and commercial customers, says it is
too dependent on Westcoast's main transmission line. It needs Southern Crossing
to provide an alternative source of gas.
But Willms said the new pipeline "would also hurt B.C.'s northeast gas producers,
already struggling with low natural gas prices, by using gas from Alberta."
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