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BC govt court case another ‘stall tactic’ to block Trans Mountain expansion – CAPP

BC govt court case another ‘stall tactic’ to block Trans Mountain expansion – CAPP

Photo by Reuters

27th April 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – A reference court case brought by the environment-focused minority provincial government of British Columbia that seeks a confirmation of the province's constitutional rights to defend against the risks of a bitumen spill has been criticised by Canada’s petroleum producers as “just another stall tactic”.

The Canadian Association of Petroleum Producers (CAPP) has issued a statement in response to the case filed with the courts on Thursday, lamenting the extraordinary lengths the government is going through to frustrate and hinder the C$7.4-billion investment, that had already received federal and provincial approvals as long as 18 months ago.

“What Premier John Horgan and his government are doing is a sham. They are not acting in the best interests of Canadians, or British Columbians, but are instead advancing their own political agenda,” CAPP president and CEO Tim McMillan said.

“Trans Mountain underwent a thorough and extensive regulatory review – determining there was enough scientific evidence to ensure marine safety and approve the project. Trans Mountain is in Canada’s best interest. Ottawa approved this project on the evidence that we can protect Canada’s West Coast today and into the future. Now it’s time to build pipelines, not legal barricades.”

According to the CAPP, British Columbia’s latest move discriminates against both the product and the transportation type, purposely alienating Trans Mountain and stalling its construction. In addition, British Columbia wants to add a duplicative process to the project, which has already undergone the most extensive regulatory review in Canadian history and was approved under the National Energy Board Act, the CAPP said in a statement.

The association called on the federal government led by Liberal PM Justin Trudeau to move the project forward without further legal or political delays from the British Columbia government, or risk hurting the national economy and the livelihoods of thousands of middle-class Canadians.

CAPP pointed out that when Trudeau approved the Trans Mountain expansion project, he made a commitment to get Canada’s oil and natural gas resources to tidewater for export to ensure fair market value. As part of that commitment, he introduced the C$1.5-billion Oceans Protection Plan to further enhance marine response, complementing the Western Canada Marine Response Corporation.

In the past two years, Canada has lost more than C$60-billion in capital investment with the demise of Enbridge’s Northern Gateway pipeline, TransCanada’s Energy East pipeline, and Petronas’ Pacific NorthWest LNG project, besides others.

“Oil and natural gas continue to play a significant role in the world’s future energy mix. Canada has an opportunity to meet that demand but only with effective regulatory policies, and cooperation between all levels of governments. We all want Canada to succeed,” McMillan said.

According to CAPP data, about 2.2-million tonnes of oil were safely shipped from the Port of Vancouver in 2011. Tankers have safely and regularly transported crude from Canada’s West Coast since the 1930s.

Canada’s existing pipeline network is currently operating at capacity at four-million barrels a day. CAPP forecasts the supply of western Canadian oil will rise to 5.4-million barrels a day by 2030, an increase of 1.5-million barrels a day from 2016 figures.

The CEO of Kinder Morgan Steven Kean has recently conceded that the twinning of the existing Kinder Morgan crude oil pipeline between Alberta and British Columbia “may be untenable for a private party to undertake”. The company is now continuing stakeholder discussions until a deadline of May 31.

Edited by Creamer Media Reporter

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