Canadian Pipeline Projects Prioritize Domestic Steel

Major oil and gas developers are favouring Canadian contractors and steel suppliers as Canada's energy capital spending is projected to exceed $200 billion through 2040.

Updated on Nov. 4, 2026 in Oil and Gas

Stacked bare steel pipe sections in rows across a flat open prairie yard under an overcast sky, with a single raw pipe end in the foreground. — Major oil and gas developers are buying Canadian steel and hiring domestic contractors as Enbridge advances its $4-billion Sunrise natural gas expansion, slated for 2028 completion. AI Illustration. Upload story photo >

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Pipeline developers are prioritizing Canadian contractors and steel suppliers on projects including Enbridge's $4-billion Sunrise natural gas expansion, which is slated for completion in 2028. Steel for the Sunrise expansion was manufactured at InterPro Pipe and Steel's facility in Regina, Saskatchewan.

Why it matters

Coastal GasLink's expansion is needed to add pipeline capacity after LNG Canada's owners approved Phase 2 of the export terminal. The shift toward domestic sourcing ties major energy infrastructure spending to Canadian steel producers and workers across the country.

RBC estimates more than $200 billion in oil and gas capital spending through 2040, with Coastal GasLink targeting 70 per cent Canadian steel for its expansion. The projection does not break down how spending will be allocated across individual projects.

The players

Enbridge

Enbridge is a major Canadian energy infrastructure company that operates oil and natural gas pipelines across North America.

Tenaris

Tenaris is a global manufacturer of steel pipe products whose Sault Ste. Marie operation is Canada's only facility producing seamless steel pipe for the oil and gas sector.

Coastal GasLink

Coastal GasLink is a British Columbia natural gas pipeline company building infrastructure to supply LNG Canada's export terminal in Kitimat.

The details

Enbridge's Sunrise expansion moves natural gas to customers in British Columbia, Alberta and the U.S. Pacific Northwest. Coastal GasLink's expansion will add compressor stations and upgrade facilities along a 670-kilometre route.

August: Nisga'a Nation and Western LNG awarded the Prince Rupert Gas Transmission pipeline construction contract to Surerus Murphy Joint Venture.
September: LNG Canada's owners approved Phase 2 of the export terminal, requiring the Coastal GasLink expansion.
May: Tenaris announced a $306-million expansion at its Sault Ste. Marie operation.
2028: Enbridge's Sunrise expansion is slated for completion.

Market Landscape

The Coastal GasLink expansion is tied directly to LNG Canada's approved Phase 2, which requires added pipeline capacity to reach export markets. Domestic sourcing by pipeline developers reflects a broader push to keep LNG-era infrastructure spending within Canadian supply chains.

Canadian steel demand from these projects could support manufacturing jobs in Ontario, Saskatchewan and elsewhere across the supply chain. Residents of British Columbia and Alberta may see infrastructure work tied to these pipelines in their regions.

The takeaway

Domestic sourcing commitments are becoming a central feature of major Canadian energy projects, and their outcomes will depend on whether contractor and steel targets are met as spending ramps up.

What happens next

Enbridge's Sunrise expansion is slated for completion in 2028, and the Origins CCS Hub in Alberta is expected to become Canada's largest CCS project when it goes into operation early next year.