Northern Pipeline Agency’s 2023-24 Departmental Results Report
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From the Commissioner
Commissioner
It is my pleasure to present the 2023-24 Departmental Results Report for the Northern Pipeline Agency (the Agency).
The Agency was established by the Northern Pipeline Act (the Act) in 1978 to facilitate the planning and construction by Foothills Pipe Lines Ltd. (Foothills) of the Canadian portion of the Alaska Highway Natural Gas Pipeline (AHGP) project and to maximize social and economic benefits from its construction and operation while minimizing any adverse effects. The pipeline was certificated in 1978 under the Act to transport Alaskan and possibly northern Canadian natural gas to southern markets in Canada and the United States, as provided for by the Canada-U.S. Agreement on Principles Applicable to a Northern Natural Gas Pipeline.
The southern portion of the pipeline was constructed in the early 1980s and presently transports Canadian gas to commercial markets. Fluctuating market and economic conditions since 1982 have led to several delays in the completion of the northern portion of the AHGP. The Agency’s activity levels reflect these fluctuating conditions.
In 2008, TransCanada PipeLines Limited (now TC Energy), which owns Foothills, was selected by the State of Alaska to pursue a large-scale pipeline project that would transport natural gas in a large diameter buried pipeline from Prudhoe Bay, Alaska to Boundary Lake, Alberta using the northern portion of the AHGP project. However, Foothills/TC Energy notified the Agency in February 2013 that no further work is planned on the AHGP, and it will await further commercial interest before recommencing its efforts.
To align with the reduction in the AHGP project activities, the Agency has since scaled down its operations to a minimal level while continuing to fulfill Canada’s ongoing obligations as set out in the Act. During this time, the Agency will also respond to any incoming inquiries from other government agencies, Indigenous peoples and the public.
Results – what we achieved
Core responsibilities and internal services
- Core responsibility 1: Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
- Internal services
Core responsibility 1: Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
In this section
- Description
- Progress on results
- Key risks
- Resources required to achieve results
- Related government-wide priorities
- Program inventory
Description
Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
Progress on results
This section presents details on how the department performed to achieve results and meet targets for oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project. Details are presented by departmental result.
Table 1: Targets and results for oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
Table 1 provides a summary of the target and actual results for each indicator associated with the results under oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project.
The Agency will maintain the appropriate minimum level of preparation activities for a regulatory framework, so as to remain prepared to ramp up quickly to effectively regulate and facilitate the planning and construction of the pipeline should the project proceed.
| Departmental Result Indicators | Target | Date to achieve target | Actual Results |
|---|---|---|---|
| The Agency will respond to company and public correspondence within 15 business days of receipt. | 80% | Ongoing |
2021–22: 100% |
The Agency received two requests during the reporting period. One request was from an Indigenous community seeking information, and the second request consisted of a regulatory application from Foothills seeking an approval to amend its shareholders’ agreement pursuant to subsection 21(6) of the Act.
Additional information on the detailed results and performance information for the Agency’s program inventory is available on GC InfoBase.
Details on results
The following section describes the results for oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project in 2023–24 compared with the planned results set out in the Agency’s departmental plan for the year.
The Agency will maintain the appropriate minimum level of preparation activities for a regulatory framework, so as to remain prepared to ramp up quickly to effectively regulate and facilitate the planning and construction of the pipeline should the project proceed.
Results achieved
- To align with the reduction in the AHGP project activities, the Agency has scaled down its operations to a minimal level while continuing to fulfill Canada’s ongoing obligations as set out in the Act.
- The Agency has commenced consideration of Foothill’s December 13, 2023 application to the Minister to amend its shareholders’ agreement pursuant to subsection 21(6) of the Act. A decision is sought for mid 2024.
Key risks
In February 2013, Foothills/TC Energy informed the Agency that no further work is planned on the AHGP at this time and that it will await further commercial interest before recommencing its efforts. The challenge before the Agency is to preserve the progress and outcomes achieved to deliver an efficient and effective regulatory review framework of updated environmental, socio-economic and technical information which takes into account changes since the Act came into force and the pipeline was certificated in the late 1970’s. Failure to be positioned for timely preparations, should the pipeline project be resumed, could jeopardize the Government of Canada’s performance of its responsibilities under the Act.
Resources required to achieve results
Table 2: Snapshot of resources required for oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
Table 2 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.
| Resource | Planned | Actual |
|---|---|---|
| Spending | $572,629 | $335,993 |
| Full-time equivalents | 4 | 1 |
Complete financial and human resources information for the Agency’s program inventory is available on GC InfoBase.
Related government-wide priorities
Given the ramped down condition of the Agency, the Agency has nothing to report on related government-wide priorities.
Program inventory
Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project is supported by the following single program:
- Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project
Additional information related to the program inventory for oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project is available on the Results page on GC InfoBase.
Internal services
In this section
- Description
- Progress on results
- Resources required to achieve results
- Contracts awarded to Indigenous business
Description
Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:
- management and oversight services
- communications services
- legal services
- human resources management services
- financial management services
- information management services
- information technology services
- real property management services
- materiel management services
- acquisition management services
Progress on results
This section presents details on how the department performed to achieve results and meet targets for internal services.
Resources required to achieve results
Table 3: Resources required to achieve results for internal services this year
Table 3 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.
| Resource | Planned | Actual |
|---|---|---|
| Spending | $0 | $0 |
| Full-time equivalents | 0 | 0 |
The Agency has a single strategic outcome and a single program. As a small and separate federal entity, the Agency has service agreements with Natural Resources Canada, Department of Justice, Public Services and Procurement Canada, Treasury Board of Canada Secretariat, and the Canada Energy Regulator, and expenditures for internal services through these agreements are recorded as program spending.
The complete financial and human resources information for the Agency’s program inventory is available on GC InfoBase.
Contracts awarded to Indigenous businesses
Government of Canada departments are to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment is to be fully implemented by the end of 2024–25.
The Agency is a Phase 3 department and is aiming to achieve the minimum 5% target by the end of 2024–25.
During 2023-24, the Agency did not have any contracts, nor initiated any contracting processes; however, should contracts be needed in 2024-25, the Agency will seek to achieve awarding at least 5% of the total value of its contracts to Indigenous businesses during 2024-25. The Agency will also identify other opportunities to secure goods and services by considering Indigenous businesses, such as expenditures related to travel accommodation, and office supplies.
Spending and human resources
In this section
Spending
This section presents an overview of the department's actual and planned expenditures from 2021–22 to 2026–27.
Budgetary performance summary
Table 4 Actual three-year spending on core responsibilities and internal services (dollars)
Table 4 presents how much money the Agency spent over the past three years to carry out its core responsibilities and for internal services.
| Core responsibilities and internal services | 2023–24 Main Estimates | 2023–24 total authorities available for use | Actual spending over three years (authorities used) |
|---|---|---|---|
| Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project | 572,629 | 545,255 |
|
| Subtotal | 572,629 | 545,255 |
|
| Internal services | 0 | 0 |
|
| Total | 572,629 | 545,255 |
|
Analysis of the past three years of spending
The actual spending of the Agency has increased steadily during the three-year period. Although the Agency has scaled down its operations to a minimal level, it continues to fulfill Canada’s ongoing obligations as set out in the Act. In particular, during this reporting period, the Agency has received and is considering a regulatory application from Foothills to amend their shareholders’ agreement pursuant to subsection 21(6) of the Act. Accordingly, the Agency is acting on incoming inquiries from other government agencies, Indigenous peoples and the public as it relates to this regulatory application.
More financial information from previous years is available on the Finances section of GC Infobase.
Table 5 Planned three-year spending on core responsibilities and internal services (dollars)
Table 5 presents how much money the Agency plans to spend over the next three years to carry out its core responsibilities and for internal services.
| Core responsibilities and internal services | 2024–25 planned spending | 2025–26 planned spending | 2026–27 planned spending |
|---|---|---|---|
| Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project | 569,670 | 1,298,629 | 1,298,629 |
| Subtotal | 569,670 | 1,298,629 | 1,298,629 |
| Internal services | 0 | 0 | 0 |
| Total | 569,670 | 1,298,629 | 1,298,629 |
Analysis of the next three years of spending
For 2024-25, the Agency’s planned spending in the amount of $569,670 is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project. While forecasts for 2025-26 and 2026-27 continue to reflect an increased level of planned spending, these forecasts may be adjusted as necessary to reflect a funding level commensurate with the Agency’s anticipated operational requirements.
More detailed financial information from previous years is available on the Finances section of GC Infobase.
Information on the alignment of the Agency’s spending with Government of Canada’s spending and activities is available on GC InfoBase.
Funding
This section provides an overview of the department's voted and statutory funding for its core responsibilities and for internal services. For further information on funding authorities, consult the Government of Canada budgets and expenditures.
Graph 1: Approved funding (statutory and voted) over a six-year period
Graph 1 summarizes the department's approved voted and statutory funding from 2021-22 to 2026-27.
Text version of graph 1
This bar graph shows the Northern Pipeline Agency planned and actual spending (voted and statutory expenditures) for the fiscal years between 2021-22 and 2026-27.
Total spending and planned spending by period is as follows:
| Fiscal Year | 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 | 2026-2027 |
|---|---|---|---|---|---|---|
| Voted | 248,085 | 292,788 | 300,687 | 540,000 | 1,202,719 | 1,202,719 |
| Statutory | 7,607 | 6,310 | 5,306 | 29,670 | 95,910 | 95,910 |
| Total | 255,692 | 299,098 | 335,993 | 569,670 | 1,298,629 | 1,298,629 |
Analysis of statutory and voted funding over a six-year period
The Agency’s actual spending has steadily increased between 2021–22 and 2023–24. This actual spending aligns with the reduction in the AHGP project activities while continuing to fulfill Canada’s obligations under the Act. For 2024–25, the Agency’s planned spending in the amount of $569,670 is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project. While forecasts for 2025–26 and 2026–27 continue to reflect an increased level of planned spending, these forecasts will be adjusted as necessary to reflect a funding level commensurate with the Agency’s anticipated operational requirements.
For further information on the Agency’s departmental voted and statutory expenditures, consult the Public Accounts of Canada.
Financial statement highlights
The Agency’s complete financial statements (unaudited) for the year ended March 31, 2024, are available online.
Table 6 Condensed Statement of Operations (unaudited) for the year ended March 31, 2024 (dollars)
Table 6 summarizes the expenses and revenues for 2023–24 which net to the cost of operations before government funding and transfers.
| Financial information | 2023–24 actual results | 2023–24 planned results | Difference (actual results minus planned) |
|---|---|---|---|
| Total expenses | 338,507 | 574,724 | 236,217 |
| Total revenues | 0 | 0 | 0 |
| Net cost of operations before government funding and transfers | 338,507 | 574,724 | 236,217 |
The 2023–24 planned results information is provided in the Agency’s Future-Oriented Statement of Operations and Notes 2023–24.
The actual results align with the reduction in the AHGP project activities while continuing to fulfill Canada’s obligations under the Act. For 2023–24, the Agency’s planned results in the amount of $574,724 is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project.
Table 7 Condensed Statement of Operations (unaudited ) for the year ended March 31, 2024 (dollars)
Table 7 summarizes actual expenses and revenues which net to the cost of operations before government funding and transfers.
| Financial information | 2023–24 actual results | 2023–24 planned results | Difference (actual results minus planned) |
|---|---|---|---|
| Total expenses | 338,507 | 301,901 | 36,606 |
| Total revenues | 0 | 0 | 0 |
| Net cost of operations before government funding and transfers | 338,507 | 301,901 | 36,606 |
The total Agency expenses of $338,507 increased by $36,606 from $301,901 in 2022-23 mainly due to an increase in professional services, arising from the consideration of the Foothills’ application to the Agency to amend its shareholders’ agreement.
Table 8 Condensed Statement of Financial Position (unaudited) as of March 31, 2024 (dollars)
Table 8 provides a brief snapshot of the department’s liabilities (what it owes) and assets (what the department owns), which helps to indicate its ability to carry out programs and services.
| Financial information | Actual fiscal year (2023–24) | Previous fiscal year (2022–23) | Difference (2023–24 minus 2022–23) |
|---|---|---|---|
| Total net liabilities | 241,556 | 4,154 | 237,402 |
| Total net financial assets | 241,556 | 4,154 | 237,402 |
| Departmental net debt | 0 | 0 | 0 |
| Total non-financial assets | 0 | 0 | 0 |
| Departmental net financial position | 0 | 0 | 0 |
Total Agency liabilities include accounts payable of $241,556 to other government departments and agencies. The increase of $237,402 in accounts payable to other government departments and agencies from 2022-23 is mainly due to timing of billing.
Total Agency net financial assets of $241,556 include $27,374 in accounts receivable from other government departments and agencies and $214,182 due from the consolidated revenue fund, which represents amounts that may be disbursed without further charges to the Agency authorities.
Total Agency non-financial assets of $0 consist of fully depreciated tangible capital assets.
Human resources
This section presents an overview of the department’s actual and planned human resources from 2021–22 to 2026–27.
Table 9: Actual human resources for core responsibilities and internal services
Table 9 shows a summary of human resources, in full-time equivalents (FTEs), for the Agency’s core responsibilities and for its internal services for the previous three fiscal years.
| Core responsibilities and internal services | 2021–22 actual FTEs | 2022–23 actual FTEs | 2023–24 actual FTEs |
|---|---|---|---|
| Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project | 1 | 1 | 1 |
| Subtotal | 1 | 1 | 1 |
| Internal services | 0 | 0 | 0 |
| Total | 1 | 1 | 1 |
Analysis of human resources over the last three years
The actual FTEs for the last three years has remained constant and aligns with the reduction in the AHGP project activities while continuing to fulfill Canada’s obligations under the Act.
Table 10: Human resources planning summary for core responsibilities and internal services
Table 10 shows information on human resources, in full-time equivalents (FTEs), for each of the Agency’s core responsibilities and for its internal services planned for the next three years. Human resources for the current fiscal year are forecasted based on year to date.
| Core responsibilities and internal services | 2024–25 planned FTEs | 2025–26 planned FTEs | 2026–27 planned FTEs |
|---|---|---|---|
| Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project | 4 | 4 | 4 |
| Subtotal | 4 | 4 | 4 |
| Internal services | 0 | 0 | 0 |
| Total | 4 | 4 | 4 |
Analysis of human resources for the next three years
Forecasts for 2024-25 to 2026-27 reflect an increased level of planned human resources to address the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project. These forecasts may be adjusted as necessary to reflect a level commensurate with the Agency’s anticipated operational requirements.
Corporate information
Departmental profile
Appropriate minister: The Honourable Jonathan Wilkinson, P.C., M.P.
Institutional head: Michael Vandergrift
Ministerial portfolio: Energy and Natural Resources Canada
Enabling instrument: Northern Pipeline Act
Year of incorporation / commencement: 1978
Other: The total recoverable costs of the Agency to carry out federal responsibilities for the planning and construction of the Alaska Highway Natural Gas Pipeline project are fully recovered from Foothills Pipe Lines Ltd., the project proponent.
Departmental contact information
Mailing address: Room 470, 588 Booth Street, Ottawa, ON K1A 0Y9
Telephone: 613 995 1150
Email: infonpa-apn@npa-apn.gc.ca
Website(s): https://northern-pipeline.canada.ca/home
Supplementary information tables
The following supplementary information table is available on the Agency’s website:
Federal tax expenditures
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.
Definitions
appropriation (crédit)
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures (dépenses budgétaires)
Operating and capital expenditures; transfer payments to other levels of government, departments or individuals; and payments to Crown corporations.
core responsibility (responsabilité essentielle)
An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.
Departmental Plan (plan ministériel)
A report on the plans and expected performance of an appropriated department over a 3year period. Departmental Plans are usually tabled in Parliament each spring.
departmental priority (priorité)
A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.
departmental result (résultat ministériel)
A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.
departmental result indicator (indicateur de résultat ministériel)
A quantitative measure of progress on a departmental result.
departmental results framework (cadre ministériel des résultats)
A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.
Departmental Results Report (rapport sur les résultats ministériels)
A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.
Full-time equivalent (équivalent temps plein)
A measure of the extent to which an employee represents a full person-year charge against a departmental budget. For a particular position, the full-time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.
gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus])
An analytical tool used to assess support the development of responsive and inclusive how different groups of women, men and gender-diverse people experience policies, programs and policies, programs, and other initiatives. GBA Plus is a process for understanding who is impacted by the issue or opportunity being addressed by the initiative; identifying how the initiative could be tailored to meet diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative. GBA Plus is an intersectional analysis that goes beyond biological (sex) and socio-cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion, and sexual orientation.
government-wide priorities (priorités pangouvernementales)
For the purpose of the 2023–24 Departmental Results Report, government-wide priorities are the high-level themes outlining the government’s agenda in the November 23, 2021, Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fight harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation; and fighting for a secure, just and equitable world.
horizontal initiative (initiative horizontale)
An initiative where two or more federal departments are given funding to pursue a shared outcome, often linked to a government priority.
non-budgetary expenditures (dépenses non budgétaires)
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance (rendement)
What a department did with its resources to achieve its results, how well those results compare to what the department intended to achieve, and how well lessons learned have been identified.
performance indicator (indicateur de rendement)
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an department, program, policy or initiative respecting expected results.
plan (plan)
The articulation of strategic choices, which provides information on how a department intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.
planned spending (dépenses prévues)
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.
A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.
program (programme)
Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.
program inventory (répertoire des programmes)
Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.
result (résultat)
A consequence attributed, in part, to an department, policy, program or initiative. Results are not within the control of a single department, policy, program or initiative; instead they are within the area of the department’s influence.
Indigenous business (entreprise autochtones)
For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, a department that meets the definition and requirements as defined by the Indigenous Business Directory.
statutory expenditures (dépenses législatives)
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
target (cible)
A measurable performance or success level that a department, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
voted expenditures (dépenses votées)
Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.
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