The federal government has approved a major natural gas infrastructure project in British Columbia, positioning it as a key step in strengthening Canada’s energy capacity and trade opportunities.

Natural Resources Minister Tim Hodgson announced the approval of the Sunrise Expansion Program, a $4-billion project to expand Enbridge’s Westcoast pipeline system.

The expansion is expected to add up to 300 million cubic feet per day of transportation capacity to one of British Columbia’s primary natural gas systems, helping meet growing demand across the province.

Officials say the additional supply will support heating for homes, businesses, schools and hospitals, as well as industrial and manufacturing sectors. It is also intended to support future exports, including supply to the Woodfibre LNG facility, which has been described as a net-zero LNG project.

Construction is expected to begin this summer. The project is projected to contribute more than $3 billion to Canada’s GDP, generate over $700 million in tax revenue and create up to 2,500 jobs at peak construction, including opportunities for Indigenous communities.

The federal government says the expansion aligns with its broader strategy to diversify trade and increase access to international energy markets, particularly in Asia.

Enbridge CEO Greg Ebel said the project is a critical piece of infrastructure that will help advance Canada’s energy ambitions while supporting economic growth and energy security.

Ottawa says it remains committed to advancing major projects while maintaining environmental standards and consulting with Indigenous communities.