Market Snapshot: Repurposing pipelines: a look into present and future trends

Release date: 2023-11-08

Canada’s pipeline network is constantly evolving due to varying market conditions. These changes can include reversing the flow direction on pipelines or repurposing existing pipelines for new commodities. Today, Canada's pipelines mainly transport hydrocarbons. More pipelines may be dedicated to carrying commodities such as hydrogen and captured CO₂^Footnote 1 in the future.

Figure 1: Length of CER-regulated pipelines by commodity transported

As the world transitions to a net-zero emissions^Definition* future^Footnote 2, new transportation capacity may be needed to move hydrogen^Footnote 3, CO₂, and other commodities. In Canada’s Energy Future 2023 report, net-zero scenarios projected expanded use of hydrogen in industrial, transportation, residential and commercial sectors and increased capture and permanent storage of CO₂^Footnote 4. Expanding the transportation capacity for these gasses and other commodities could involve changes in pipeline operations, repurposing existing pipelines, or building new ones.

Blending hydrogen on distribution pipelines

Blending hydrogen with natural gas on existing gas distribution pipelines^Definition* is an example of how pipelines can be repurposed for new uses. Hydrogen blended into natural gas could reduce emissions from fuel combustion by end-users, such as in furnaces or gas stoves. A few hydrogen-blending pilot projects (listed below) have been initiated in Canada to blend hydrogen into existing natural gas distribution systems.^Footnote 5

• As of late 2021, Enbridge Gas is blending 2% hydrogen in the natural gas distribution system in Markham, Ontario (near Toronto). See Enbridge’s clean hydrogen page.
• As of October 2022, ATCO Gas is blending 5% hydrogen in the Fort Saskatchewan (near Edmonton) natural gas distribution system. See ATCO’s Fort Saskatchewan Hydrogen Blending.

Overcoming obstacles in repurposing transmission pipelines^Definition*

Repurposing pipelines for the transmission of hydrogen or CO₂ can cut costs over building new pipelines, according to the International Energy Agency (IEA). However, there are material, capacity, and design challenges, such as hydrogen embrittlement^Definition*, which must be fully evaluated on a case-by-case basis for each pipeline under consideration. Detection of hydrogen leaks may require new technologies and the readiness of end users to receive hydrogen in their natural gas stream. Examples of pipelines that have been converted for hydrogen and CO₂ use globally can serve as case studies for future development:

• The West Gwinville Pipeline in the United States was purchased in 2007 as a natural gas pipeline and was converted to carry CO₂ for enhanced oil recovery.^{Definition*Footnote 6}
• The Organic Carbon Dioxide for Assimilation of Plants (OCAP) Pipeline in the Netherlands was an oil pipeline converted to carry CO₂ and has operated since 2004.^Footnote 7
• In 2018, Gasunie converted an existing 12 km^Footnote 8 natural gas pipeline in the Netherlands to transport between 70% and 100% hydrogen.^Footnote 9

Hydrogen blending in transmission pipelines is being tested globally,^Footnote 10 and companies regulated by the CER are currently researching the feasibility of hydrogen blending in transmission pipelines:^Footnote 11

• Alliance Pipeline Ltd. is studying the feasibility of blending hydrogen into an existing natural gas transmission pipeline (5-20%). The expected completion of this study is June 2024.^Footnote 12
• NOVA Gas Transmission Ltd. is assessing the suitability of natural gas transportation infrastructure for hydrogen transmission. The expected completion of this project is August 2024.^Footnote 13

Pipelines repurposed in the past

Due to changing market conditions, CER-regulated pipelines have been repurposed for other types of hydrocarbons in the past. Some of the examples are given in Table 2 below. CER regulations allow companies to propose repurposing hydrocarbon^Definition* pipelines, following the CSA^Definition* standard for Oil and Gas Pipeline Systems. For example, a company must complete an engineering assessment to determine whether a pipeline system is suitable for a new product type like CO₂ or hydrogen before making a change. For more information on engineering assessments of existing pipelines and standards relevant for hydrogen and CO₂ pipelines, refer to the CSA Petroleum and Natural Gas Standards. The CER also provides guidance in submitting applications to the Commission. The filing manual describes the requirements of an application to the Commission under the Onshore Pipeline Regulations (OPR) section 43.

Table 1: Repurposed hydrocarbon pipelines

Date modified:

2024-05-17