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

Abstract In the past ten years, many pipeline and other linear energy projects have been cancelled in North America for economic, regulatory, or social license reasons. This trend is continuing today for energy transition-related pipelines and other linear projects. While the reasons for project cancellation are complex, key themes have been identified including a changing regulatory environment; political influence; increased opposition from affected and unaffected stakeholders; and market forces. Numerous project examples exist to support the analysis of oil and gas pipeline project execution risk. The paper explores how these examples illustrate future projects integral to enabling the transportation of carbon dioxide, hydrogen, biofuels, power or other products relevant to energy transition in Canada and the US. Traditional pipeline projects are compared to energy transition-related projects, testing the question of whether project differentiation and product type matter. Finally, the analysis identifies opportunities for reducing risk in pipeline project execution during the planning and regulatory phases. Energy transition faces significant new challenges requiring projects to manage an evolving regulatory, stakeholder and political landscape. Understanding these challenges helps proponents better position their projects with stakeholders who are similarly learning how modern technologies and products will be planned within existing pipeline development frameworks.