Canada’s Pipeline Transportation System 2016

Emera Brunswick Pipeline Company Ltd.’s Brunswick Pipeline

Table 10.8.1: Emera Brunswick Pipeline Company Ltd.’s Brunswick Pipeline
Commodity and NEB Group Natural Gas
(Group 2)
Average annual capacity 28 106m³/d
(1 Bcf/d)
Average utilization 2015 7%
Primary receipt points Canaport LNG Terminal near Saint John, NB
Primary delivery points St. Stephen, NB
Net investment in Direct Financing Lease, 2014 $485 million
Revenues 2014Note a $57 million
Abandonment Cost Estimate and Collection PeriodNote b $3.1 million;
40 years
Map – Emera Brunswick Pipeline

Source: NEB

Text version of this map

This map provides an overview of the Emera Brunswick Pipeline.

Overview

The Brunswick Pipeline (Brunswick) was commissioned in July 2009 and transports re-gasified natural gas 145 km from the Canaport liquefied natural gas (LNG) import terminal near Saint John, NB to the Canada-U.S. border near St. Stephen, NB. At the border it connects with the U.S. segment of the Maritimes & Northeast Pipeline. Emera Brunswick Pipeline Company Ltd., which owns the pipeline, is a wholly owned subsidiary of Emera Inc., an energy company based in Nova Scotia.

Utilization

Figure 10.8.1 shows capacity and throughput on Brunswick for 2010-2015. Capacity is 28 106m³/d (1 Bcf/d) and in 2015 throughput averaged 1.7 106m³/d (0.06 Bcf/d). Throughput tends to increase in the winter to meet peak demand in the Maritimes and U.S. Northeast market.

Figure 10.8.1: Brunswick Throughput vs. Capacity

Figure 10.8.1: Brunswick Throughput vs. Capacityy

Sources: TransCanada, NEB

Text version of this graphic

This bar chart shows throughput and capacity on Emera Brunswick Pipeline between 2010 and 2015. Capacity in 2015 was 28 106m³/d (1 Bcf/d). Throughput averaged 1.7 106m³/d (0.06 Bcf/d) in 2015, compared to 1.3 106m³/d (0.05 Bcf/d) in 2014.

Tolls

Figure 10.8.2 shows the benchmark toll for Brunswick and the GDP deflator (normalized) for 2010-2015. Tolls on Brunswick are set per cargo load per day, and converted to the equivalent price in $US/Million British Thermal Units (MMbtu). Tolls were constant from mid-2009 to mid-2014 at US$0.206 per MMbtu. In July 2014, tolls increased to US$0.216 per MMbtu.Note 1 Tolls will remain at this rate until mid-2024. Tolls were set for 25 years under a Negotiated Toll Agreement between Repsol Energy Canada Ltd. and Emera Brunswick Pipeline Company Ltd. Brunswick is regulated on a complaint basis.

Figure 10.8.2: Brunswick Benchmark Toll

Figure 10.8.2: Brunswick Benchmark Toll

Source: NEB toll filings

Text version of this graphic

This graph shows the Emera benchmark toll as a solid red line and the GDP deflator as a black dashed line. The benchmark toll was from $0.206 from 2010 to mid-2014 then increased to $0.216.

Financial

Emera New Brunswick Pipeline Company Ltd. is a Group 2 Company, operating with a direct financing lease and only one shipper. It maintains negative equity on its balance sheet due to transfer of funds to its parent company, Emera Inc., by way of promissory notes.

Brunswick’s access to debt markets is supported by Emera Inc., which, for example, DBRS assigns a credit rating of BBB (high).

Photos: left: A pump jack silhouetted against the setting sun; centre: The grey valves and wheels of a pump station on clear day; right: Folded hands hold a pen on a board room table in a large meeting room.

 

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