Session: 02-08 DESIGN - Tools and Techniques

Paper Number: 132875

132875 - A Pipeline Is a Pipeline Is a Pipeline, or Is It? Product Type, Project Differentiation, and Risk Today 

Abstract: 

In the past ten years, a significant number of pipeline projects have been cancelled in North America for economic, regulatory, or social license reasons. This trend is continuing today for energy transition-related pipelines (e.g., CO₂). While the reasons for project cancellation are complex, key themes can be identified including a changing regulatory environment; political influence; energy transition goals; increased opposition from affected and unaffected stakeholders; and market forces, including ESG as an emerging trend. Numerous project examples exist to support analysis of oil and gas pipeline project execution risk, but what might this data tell us about future pipeline projects that will be integral to enabling the transportation of hydrogen, carbon dioxide, biofuels or other products relevant to energy transition?

This paper will analyze select examples of challenges to energy transition-related pipeline projects in Canada and the US. Traditional fuel pipeline projects will be compared to energy transition-related projects, testing the question of whether project differentiation and product type matters. Among the questions that will be addressed are: 1) what challenges have first-to-market projects faced? 2) have regulators streamlined regulatory processes for new technologies and products?, 3) how have stakeholders viewed energy transition projects compared to traditional products?, 4) what can proponents do to differentiate energy transition projects and capitalize on social license?, 5) what new challenges might traditional midstream operators face when developing energy transition projects, and 6) what are some of the lessons learned from projects that have been cancelled and those that have been successful. Finally, the analysis will identify opportunities for reducing risk in pipeline project execution during the planning and regulatory phases. The energy transition faces significant new challenges that will require projects to manage an evolving regulatory, stakeholder and political landscape. Understanding these challenges will help proponents better position their projects with stakeholders who are similarly learning how new technologies and products will be managed within existing pipeline development frameworks.

 

Key Words: Project Risk, CO2 Pipeline, Hydrogen Pipeline, Biofuels, Climate, Environment and Regulatory, Energy Transition, Project Management, Social License.

Presenting Author: Jason Gillespie EXP

Presenting Author Biography: Jason Gillespie has more than 23 years of experience managing projects for energy transition, traditional oil and gas, infrastructure, government, and residential/commercial development clients. He has worked on many cross disciplinary teams involving regulatory, environment, engineering, land, survey, Indigenous and stakeholder relations. Jason has authored and reviewed hundreds of environmental reports, several peer-reviewed publications and has presented at several industry conferences. He has been sworn in as an expert panel witness. Recently, he has been working with clients to approve two of the largest waste to energy projects in Alberta.

Authors:

Jason Gillespie EXP
Jon Schmidt EXP
Jeff Raun EXP