A C$355.5 million ($284.4 million) Alberta natural gas pipeline project has survived the adoption of increasingly ambitious greenhouse gas reduction policy targets in Canada and the United States.

Shipper contracts still support the capacity addition, according to Nova Gas Transmission Ltd. (NGTL) as the Canada Energy Regulator (CER) began hearings on its West Path 2023 construction application.

“Climate change laws, policies and regulations are one set of factors,” NGTL told CER regarding the evolving environmental rules. The pipeline also took into account “other factors such as contracts, producer activity and observed flow trends.”

As TC Energy Corp.’s Alberta and British Columbia (BC) supply collection grid, NGTL tested the gas market with a June pipe...