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Canada’s Supreme Court Green-Lights Trans Mountain Pipeline

by Geoffrey Morgan
January 29, 2020, 9:08 AM
in News and Opinion
Reading Time: 3 mins read
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pipeline buildersAlberta Premier Jason Kenney says the Supreme Court of Canada’s “unprecedented” dismissal of British Columbia’s move to stop the Trans Mountain pipeline expansion project should “send a message” to Quebec that it can’t block the Energy East pipeline project.

During a Global News Radio interview over the weekend, Kenney bluntly criticized the federal government and federal regulatory processes for major projects such as pipelines and oilsands developments.

Asked about the proposed-then-withdrawn Energy East pipeline project, the premier quipped that it’s been easier for Russia to build a pipeline through Europe than for a pipeline company to build a project across Canada.

“They’re having an easier job building a similar pipeline across the 28 member states of the European Union than we can in Canada. This is just bizarre,” Kenney said.

Kenney’s interview was notable given the sharpness of his comments about a proposed oilsands development and the Supreme Court’s recent unanimous decision to dismiss B.C.’s case to restrict heavy oil shipments across its borders.

Kenney said it was “unprecedented” that the Supreme Court would rule, after just 30 minutes to confer, on such an important case.

“They came right back, slam dunk, saying that no province has the right to block a pipeline because those are, under the constitution, inter-provincial pipelines are the exclusive power of the federal government,” Kenney said.

“So this should send a message to our friends in Quebec as well, who have been claiming that they could stop a possible Energy East pipeline that would take Canadian oil to the Saint John refinery and displace Saudi oil imports in eastern Canada,” Kenney said.

A spokesperson for the premier said Kenney’s comments about Energy East were aspirational and the office isn’t aware of any plans to revive the Energy East pipeline project but is hopeful that it will be revived in the future.

TC Energy Corp., the Calgary-headquartered pipeline company that submitted an application to the build the Energy East pipeline in 2014, did not respond to a request for comment on whether the Energy East pipeline project would be revived.

The company withdrew its application to build the project in 2017 after Ottawa made changes to pipeline reviews so that both upstream and downstream emissions from the project would be considered in a regulatory review of the $15-billion, 1.1-million-barrels-per-day pipeline.

Since the original application and the withdrawal of that application, however, the market for building new oil export pipelines has changed dramatically.

“I think the country should have as many pipeline options to get its oil to market as possible,” said Dennis McConaghy, a former TC Energy executive who has since authored two books about pipelines in Canada.

However, McConaghy noted that between TC Energy’s Keystone XL pipeline, Enbridge Inc.’s Line 3 replacement project and the federally owned Trans Mountain expansion project, more than enough pipeline space is being constructed for the medium-term growth of the Canadian oil industry.

“The actual necessity of Energy East is diminished,” he said.

In addition, TC Energy had previously planned to convert two underused natural gas pipelines between Alberta and Ontario to carry heavy oil as part of the Energy East proposal.

The company has since reworked contracts on that segment of its Mainline pipeline network and is now moving more gas between Alberta and Ontario – meaning it’s unclear if the existing pipelines are still capable of transporting 1.1 million BPD of oil.

TC Energy is also the company currently building the $6.6-billion Coastal GasLink pipeline project through northern B.C.

On Monday, Coastal GasLink president David Pfeiffer said a group of Wet’suwet’en Nation protestors blockading work on the pipeline near Houston, B.C. have not yet caused delays in the company’s construction schedule.

“We have the ability to make up for lost time. However, time is short,” he said.

B.C. Premier John Horgan also appointed former Northern B.C. MP Nathan Cullen to consult and de-escalate tensions in the region.

Kenney said the pipeline company has agreements in place with all 20 elected First Nations groups along the pipeline route.

“I think the solution is for (the opposed group) to do what the elected council did and consult their local residents, 80 percent of whom, I understand, support the project,” Kenney said.

Read rest at Financial Post

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Comments 5

  1. Spurwing Plover says:
    5 years ago

    If Greenpeace was so serious about lobal Warming/Climate Change they would sop sailing all over the globe in their Fossil Fueled Ships and use sails instead

  2. rick says:
    5 years ago

    I don’t understand Quebec’s opposition to the Energy East and delivery of dilbit to them? Why do they only want Middle East oil?

    • Sonnyhill says:
      5 years ago

      Quebec, one of the best places on Earth for hydroelectric power, wants to sell carbon credits. Does Alberta want to buy those carbon credits? Only with a gun to their head.

  3. Randy Dutton says:
    5 years ago

    And who benefits? BC resident, David Holmes Black, owner of Black Press, which owns Sound Publishing, which controls many local US newspapers which have been promoting the anti-pipeline to the US, and anti-oil train movement (through the US). His mission was to prevent the more logical and practical alternatives, which are to ship oil south. He needs the oil to come to BC via pipeline. To do that, he had to manipulate public opinion. To do that, he needed to control the media. “On August 17, 2012, Black announced he is putting forth a proposal to build a $13.2 billion oil refinery in Kitimat, B.C. with his company, Kitimat Clean Ltd. The refinery would refine bitumen into eight different products.” He needs the oil to come via pipeline to make his refinery work. https://www.bclocalnews.com/news/13-billion-oil-refinery-proposed-for-kitimat-area

  4. Dave O says:
    5 years ago

    Wow, after 30 minutes of deliberation the Supreme Court came back with an unanimous decision.
    BOOM.
    Sonic boom. That is huge. BC and any other rogue anti-commerce province will just have to buck up and deal with it.

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