Page 7 - NorthAmOil Week 01

NorthAmOil COMMENTARY NorthAmOil
order had been recognised and the camp in question was empty.
TC Energy was reported to have restarted work on the pipeline on January 7, after break- ing for the holiday season. A Coastal GasLink spokeswoman, Suzanne Wilton, was reported as saying the work now underway included clearing, construction of work camps and pipe delivery. However, Wilton confirmed that the company’s security guards were abiding by the eviction order and had left the area near Houston.
Coastal GasLink said it had requested a meet- ing with the hereditary chiefs as it attempts to resolve the conflict over the site. However, one of the chiefs, Likht’samisyu Chief Dsta’hyl, tweeted that the group would only meet with govern- ment and police officials, and not the company.
Last year, the Royal Canadian Mounted Police (RMCP) enforced the previous interim injunction with the arrest of 14 people in Jan- uary 2019. The RMCP said in a statement this week that it was trying to resolve the dispute over Coastal GasLink without resorting to police enforcement. However, given the previ- ous arrests, it would not be surprising if police enforcement were required once again if protests against the project contravene the injunction.
Indeed, Coastal GasLink said this week that trees had been felled along the forestry access road leading to a pipeline work camp, which was in contravention of the order. However, the com- pany added it did not know who cut the trees.
New partners
The dispute with the hereditary chiefs comes as
TC Energy is in the process of selling a combined 65% stake in Coastal GasLink to private equity firm KKR & Co., and Alberta Investment Man- agement Corp. (AIMCo).
TC Energy had been trying to sell down its stake in the pipeline for some time, and welcomed the “partial monetisation” of the project, which was announced in late Decem- ber. The company will retain operatorship of the pipeline, and will also be in charge of its construction.
The transactions are both anticipated to close in the first half of 2020. TC Energy said in a state- ment that concurrent with the completion of the sale, it expects Coastal GasLink to enter into a secured project financing construction credit facility with a syndicate of banks, which will fund up to 80% of the project during construction.
The company added that it would record an after-tax gain of about CAD600mn ($456.24mn) after the deal closes.
The pipeline is expected to cost CAD6.6bn ($5.1bn), up from a previous estimate of CAD6.2bn ($4.8bn) a year ago. Announcing the increased cost in November, TC Energy attrib- uted it to additional meter stations and greater costs for rock work and water crossings once the company is able to gain access to the entire route.
The pipeline operator also said it would give the 20 First Nations that had signed agreements with Coastal GasLink the right to buy a 10% stake in the pipeline. This move to allow First Nation equity participation in the project could help shore up indigenous support as the com- pany attempts to negotiate with the hereditary chiefs that continue to oppose the pipeline.™
The dispute with the hereditary chiefs comes as TC Energy is in the process of selling a combined 65% stake in Coastal GasLink.
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