The resolution removes a potential hurdle but also introduces another approval process for the pipeline, which will carry 1.1 million barrels per day of crude from Alberta's oil sands to the country's Atlantic coast.
The Garden State Expansion Project, which received FERC approval, is expected to deliver 180,000 dekatherms a day of additional natural gas capacity for local distribution to thousands of customers in New Jersey, the release said.
Oasis Midstream Services LLC, the Houston company's subsidiary, is commencing a binding open season for the project, a new crude oil pipeline to be constructed in McKenzie County, N.D.
As a part of the deal, Tallgrass will acquire Sempra’s share in the pipeline’s roughly $2.6 billion of debt, which equates to about $640 million.
Environment Minister Catherine McKenna imposed numerous conditions on the project, including restrictions related to construction in or near fish habitat and additional consultation with Aboriginal groups, among other things.
Ottawa did though commit to announcing a final decision on the project this year, which would end a long-running saga for Malaysia's state-owned oil giant Petronas.
Once complete, the project will permit the Houston company's affiliate, Arrowhead Offshore Pipeline LLC, to offer transportation services of crude petroleum from Jackson County, Texas, to the Port of Calhoun located in Calhoun County, Texas.
The project will include four new refined products terminals with a combined capacity of 1.15 million barrels and about 287 miles (461 km) of new pipeline.
The Liberal government issued the rules on the grounds that public trust needed to be restored in the process for assessing big energy projects.
Natural gas supplies from the $54 billion project will come to market just as a raft of other Australian projects come on line and the U.S. is due to export its first cargo from abundant shale gas supplies.
ainted Pony also has signed an agreement with TransCanada to participate in the Towerbirch Expansion Project that will provide the company with 130 MMcf/d of firm transportation service.