Page 5 - NorthAmOil Week 24

NorthAmOil COMMENTARY NorthAmOil
the province, expressed his frustration over the delays that have plagued the project.
“ is second approval of the Trans Moun- tain pipeline isn’t a victory to celebrate. It’s just another step in a process that has frankly taken too long,” Kenney said. He urged the project’s developer to move quickly on building the new pipeline.
“We need to get a fair price for our country’s energy to create good jobs and pay for public services. Approval is not construction. So now let’s get it built!” Kenney tweeted. His comments have been echoed by the industry, with the Cana- dian Energy Pipeline Association (CEPA) saying that every year of construction delay reduces the value of the project by roughly C$693 million (US$525 million), based on data from the Par- liamentary Budget O cer.
However, environmental groups and First Nations opposing the project have warned that they will turn to the courts once again in an attempt to block the pipeline expansion.
Other politicians have also opposed the lat- est push to expand the Trans Mountain pipe- line. e project’s re-approval decision came just one day a er the House of Commons – the lower house of Canada’s Parliament – voted to accept a motion presented by Minister of Environment and Climate Change Catherine McKenna to declare a climate emergency and reaffirm Canada’s Paris Agreement targets. New Democratic Party (NDP) leader Jagmeet Singh said it was irresponsible for the Liberal government to build an oil pipeline while also vowing to meet Canada’s Paris emissions reduction targets.
But the government has claimed that the 100 megatonne cap on emissions from Alberta’s oil sands will limit future development and help Canada meet its Paris Agreement targets.
What next?
Trans Mountain’s CEO, Ian Anderson, said on June 19 that construction on the expansion could begin in September, assuming the next regulatory steps go as planned. “Getting started isthemostcriticalthing,”hesaidonaconference call.
Construction could take 30-34 months, according to Anderson. Oil could begin to ow through the expansion by the second or third quarter of 2022, with the timeline delayed by about a year since the 2018 court decision.
Anderson said Trans Mountain had stock- piled about 30% of the pipe it needs and would resume construction where it le o a year ago, at the Westridge Marine Terminal in Burnaby, BC, and between Edmonton and Jasper, Alberta.
Speaking separately in Calgary, Canadian Minister of Finance Bill Morneau said work to obtain construction permits had started this week. e project still requires approvals from the NEB, as well as permits from municipal and provincial governments.
An NEB spokeswoman, Sarah Kiley, said the regulator expects to issue a certi cate of pub- lic convenience and necessity for the project this week. All of the conditions for the project’s approval will also need to be met.
e route still needs to be nalised as well. And this step has already run into obstacles a er the Chilliwack School Board in British Colum- bia said it would ask the NEB to change the pro- posed route because it is slated to go through school grounds.
Given the levels of opposition that remains to the project, this is unlikely to be the only obsta- cle the expansion will face. While re-approval of the project seemed inevitable, it does not yet guarantee that the Trans Mountain expansion will be built.™
Oil could begin to ow through the expansion by the second or third quarter of 2022.
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