Terasen Gas is building a natural gas pipeline between Squamish and Whistler to meet growing demand for energy in the resort municipality.

 

The pipeline is also a key element in Whistler's Sustainable Energy Plan that calls for the existing propane system to be converted to natural gas.

 

The pipeline will run along existing right-of-ways and, to the extent possible, be built in conjunction with the expansion of the Sea-to-Sky Highway (Highway 99). This route reduces environmental impacts and minimizes the cost of construction through mountainous terrain.

 

In addition to providing natural gas to homes and businesses, the pipeline will also enable the municipality to potentially convert fleet vehicles to natural gas from diesel, thereby reducing the emission of air pollutants and greenhouse gases in the region.

 

The current propane system is nearing capacity and is more appropriate for serving the energy requirements of a smaller, more remote community.

 

This system also requires that propane be delivered by railcars and trucks and stored in tanks located within the community. It would have required significant costly capital investment to expand the existing system to meet anticipated energy needs. The Resort Municipality of Whistler did not support this option.

 

The cost of building the pipeline will have no direct impact on the natural gas rates charged to Squamish, Vancouver Island or Lower Mainland customers. Whistler customers will see a change to their rates resulting from the conversion to natural gas from propane.

 

Currently, the commodity cost of natural gas is lower than the commodity cost of propane. The savings from the lower commodity cost of natural gas are offset by the increased costs of building and operating the pipeline. A 2008 application to set Whistler's rates for 2009 will be based on the cost of providing service and commodity as approved by the BC Utilities Commission.