Page 11 - NorthAmOil Week 47 2020

NorthAmOil COMMENTARY NorthAmOil

Steps forward for major pipelines

A key permit for Enbridge’s Line 3 replacement has been granted, while TC Energy has

struck a major deal for indigenous participation in Keystone XL

NORTH AMERICA THERE have been two separate developments Local media in Minnesota noted that all that
involving major North American pipeline pro- remains is for the Minnesota Pollution Control
WHAT: jects during the past week. In significant progress Agency (MPCA) to issue a storm water con-
Enbridge’s Line 3 project for Enbridge’s Line 3 replacement, the pipeline struction permit to protect surface waters from
has received a crucial was awarded a crucial permit – one of the final runoff while the pipeline is being built. Min-
permit, while TC Energy is outstanding ones. Meanwhile, TC Energy has nesota’s Public Utilities Commission (PUC),
trying to ensure Keystone been trying to ensure that its Keystone XL pro- which has already approved the project several
XL is built. ject goes ahead in the face of new uncertainty times, then has to give the final green light.
following US President-elect Joe Biden’s victory These final steps mark the culmination of a
WHY: at the polls. six-year approval process for the Line 3 replace-
The project developers Last week, TC Energy announced that it had ment between Alberta and Wisconsin. The seg-
have been trying to struck a deal with Natural Law Energy (NLE), ments of the pipeline in Canada, North Dakota
move forward with their a group that comprises several First Nations. and Wisconsin have already been replaced.
pipelines for several The deal paves the way for NLE to invest up to The MPCA reportedly had 30 days from
years, but challenges CAD1bn ($768mn) in Keystone XL. It comes as November 23 to determine whether to issue the
remain, especially for TC Energy seeks to show that its project aligns storm water construction permit.
Keystone XL. with Biden’s ‘Build Back Better’ agenda, even The ageing pipeline is currently operating at
though his campaign said earlier this year that roughly half of its capacity, and once the replace-
WHAT NEXT: he would revoke the presidential permit for ment is complete it will be able to carry up to
Concerns remain that US Keystone XL if elected. 760,000 barrels per day (bpd).
President-elect Joe Biden
could cancel Keystone Permit progress Trying to survive
XL’s presidential permit. On November 23, the US Army Corps of Engi- The path forward for Keystone XL is far less
neers approved one of the final outstanding per- certain. Biden’s campaign said in May that he
mits for the Line 3 replacement pipeline, which was “strongly opposed” to the pipeline, but TC
will allow it to cross northern Minnesota. Energy’s recent moves suggest the company still
“This decision is based on balancing devel- hopes to convince him otherwise.
opment with protecting the environment,” said The coronavirus (COVID-19) pandemic has
the Corps’ commander of the St Paul District, hit the economy and jobs, so TC Energy has
Colonel Karl Jansen. been keen to talk up Keystone XL’s job creation

Week 47 26•November•2020 www. NEWSBASE .com P11