On Wednesday, Aug. 28, the National Energy Board (NEB) became the Canada Energy Regulator (CER). For further information please visit our Implementing the Canadian Energy Regulator Act information page

Pipeline Profiles: Genesis Pipeline Canada Ltd.

Pipeline system and key points

Section updated June 2019

Genesis Pipeline Canada Ltd. (GPCL) owns the Genesis pipeline system. The Genesis pipeline system forms part of a pipeline infrastructure that interconnects NOVA Chemicals’ ethylene plant in Corunna, Ontario with NOVA Chemicals’ polyethylene facilities in Corunna and Mooretown, and customers in Ontario and Michigan. Segments of the Genesis pipeline transport natural gas liquids to and from NOVA Chemicals’ Corunna plant and storagefacilities in Michigan. Another segment sources feedstock for the NOVA Chemicals’ Corunna facility from the Marcellus basin, which is transported on Energy Transfer Partners’ Mariner West pipeline. GPCL is a wholly owned subsidiary of NOVA Chemicals Corporation. Detailed description of the Genesis pipeline segments [Document 3463773].

Official NEB documents related to the construction, operation and maintenance of the Genesis pipeline system can be found here: Genesis' oil pipeline regulatory documents [Folder 3300674]; and here Genesis' feedstock pipeline regulatory documents [Folder 3563333].

You can see the Genesis pipeline and all NEB-regulated pipelines on the Board’s Interactive Pipeline Map. The map shows more detailed location information, the products carried by each pipeline, the operating status and more.

Genesis pipeline system map

Source: NEB

Text version of this map

This map provides an overview of the Genesis Pipeline.

Tolls

Section updated June 2019

A toll is the price charged by a pipeline company for transportation and other services. Tolls allow pipeline companies to safely operate and maintain pipelines. Tolls also provide funds for companies to recover capital (the money used to build the pipeline), pay debts, and provide a return to investors.

The interactive graph below shows the Genesis Pipeline Tolls Dashboard.

GPCL is subject to Group 2 financial regulation, and tolls on the Genesis pipeline system are regulated by the NEB on a complaint basis. See more information on financial regulation of Group 2 pipeline companies.

Official NEB documents related to the traffic, tolls and tariffs for the Genesis pipeline system can be found here: Genesis Pipeline toll documents [Folder 572286].

Abandonment funding

Section updated June 2019

The NEB requires all pipelines to set aside funds to safely cease operation of a pipeline at the end of its useful life. In 2013, GPCL estimated it would cost $3.1 million to do this for the Genesis pipeline system. These funds will be collected over 40 years and are being set aside in a trust.

Table 1: Genesis pipeline system abandonment trust fund balance
  2015 2016 2017 2018
Trust fund balance ($) 110 826 257 096 381 824 500 187

Official NEB documents related to abandonment funding can be found here, sorted by year and by company: abandonment funding documents [Folder 3300366].

Pipeline financial information

Section updated June 2019

Pipeline companies report important financial information to the Board quarterly and/or annually. A strong financial position enables companies to maintain their pipeline systems, attract capital to build new infrastructure, and meet the market’s evolving needs. The data in this table comes from Genesis Pipeline’s annual audited financial statement filings [Folder 369036].

Table 2: Genesis Pipeline’s financial information
  2013 2014 2015 2016 2017 2018
Revenues (million $) 0.799 0.522 0.661 0.595 0.512 0.462
Expenses (million $) 0.262 0.046 0.045 0.043 0.055 0.058
Net income (million $) 0.394 0.350 0.453 0.405 0.336 0.297

Corporate financial information

Section updated June 2019

GPCL is a wholly owned subsidiary of NOVA Chemicals Corporation. NOVA Chemicals Corporation is a major producer and marketer of plastics and chemicals in North America.

Credit ratings and financial ratios provide an assessment of the financial strength of a company, including its ability to attract capital to build new infrastructure and meet financial obligations. The credit ratings below are expert opinions of how likely the debt issuer is to live up to its obligations. The financial ratios provided below were calculated by DBRS.

Table 3: NOVA Chemicals Corp.'s credit ratings
  2014 2015 2016 2017 2018
EBITDA interest coverage ratio 11.21 13.98 16.33 8.70 7.71
Cash flow to total debt ratio (%) 69 61 89 32 35
DBRS credit rating BBB (low) BBB (low) BBB (low) BBB (low) BBB (low)
Moody's credit rating Ba1 Ba1 Ba1 Ba1 Ba1
S&P credit rating BB+ BB+ BB+ BB+ BB+

Condition Compliance

Section updated September 2018

Every pipeline company in Canada must meet federal, provincial or territorial, and local requirements. This includes Acts, Regulations, rules, bylaws, and zoning restrictions. Pipelines are also bound by technical, safety, and environmental standards along with company rules, protocols and management systems. In addition to these requirements, the Board may add conditions to regulatory instruments that each company must meet. Condition compliance is monitored by the Board and enforcement action is taken when required. For a detailed list of conditions that GPCL must meet, and their status, please see the condition compliance table and search for “Genesis Pipeline Canada Ltd.”

Safety Performance

Section updated June 2019

The Board holds the companies it regulates accountable to protect the safety of Canadians and the environment. As part of this accountability, companies must report to the NEB events such as incidents and unauthorized third-party activities that happen without the pipeline company’s written consent. For a summary of pipeline incidents and unauthorized activities on the Genesis pipeline since 2008, visit the Safety performance dashboard and select “Genesis Pipeline Canada Ltd.”

Emergency Management

Section updated June 2019

The NEB checks to make sure companies are keeping pipelines safe by doing inspections, in-depth safety audits, and other activities. Yet, even with these precautions, an emergency could still happen. Sound emergency management practices improve public safety and environmental protection outcomes, and provide for more effective emergency response.

The NEB holds its regulated companies responsible for anticipating, preventing, mitigating, and managing incidents of any size or duration. Each company must have an emergency management program that includes detailed emergency procedures manuals to guide its response in an emergency situation. We oversee the emergency management program of a regulated company’s projects as long as they operate.

The Board requires companies to publish information on their emergency management program and their emergency procedures manuals on their websites so Canadians can access emergency management information. Genesis Pipeline’s Emergency Response plan is available on their website.

 

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