Resource World Magazine

Resource World - Apr-May 2016 - Vol 14 Iss 3

Issue link: http://resourceworld.uberflip.com/i/661612

Contents of this Issue

Navigation

Page 53 of 63

54 www.resourceworld.com A P R I L / M A Y 2 0 1 6 the oil patch report B r u c e L a n t z W hile the battle may seem to be always uphill, transCanada Corp. [TRP-TSX] remains committed to the Energy East pipeline project. The project would see a 4,600-kilometre pipeline that, if successful, will transport 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to the refineries of Eastern Canada and a marine terminal in Saint John, New Brunswick. It would be built by converting an existing natural gas pipeline to one suited for oil, plus constructing new sections of pipe- line. The company estimates the cost now at $15.7 billion, up from the original $12 billion. The pipeline's completion would mean Eastern Canada could cut its reliance on oil imported from the US, Venezuela, Nigeria and Saudi Arabia. It would mean new life for the Alberta oil sands plus a much- needed opportunity for the Canadian industry to source global markets. A Fraser Institute study last year found that pipelines are 4.5 times safer than rail. Despite opposition from First Nations, environmental groups and Montreal-area mayors, as well as the Québec government, which has applied for an injunction to stall the pipeline project, TransCanada is fully committed to the development of Energy East, says spokesman Tim Duboyce. "This pipeline project has purpose, and would make the transportation of the oil we all need, every single day, safer and more environmentally respectful than the situation we have right now," he said, adding it will support the petro- chemical industry with the reliability and competitive edge a pipeline brings while also improving national energy self-suf- ficiency by improving access to Western Canadian oil. Duboyce said Energy East will offset the equivalent of more than 1,500 rail tankers daily. That's significant because those who live in communities with railways running through them would rather have that oil travelling safely, underground and away from their communities. Plus, it will sup- port 14,007 full-time direct and spin-off jobs annually over the nine-year develop- ment and construction period. A National Energy Board (NEB) review will conclude with a report and a recom- mendation to the federal government in 2018. If the project gets the green light at that time, construction would begin and continue through to an in-service date late in 2020. So far the project has encountered sig- nificant opposition in Ontario and Québec, where a coalition of environmental groups tried unsuccessfully for an injunction that would have forced a separate environmen- tal assessment (EA) in addition to the NEB process, and then the province's environ- ment minister filed for an injunction that would force an EA in Québec. Those moves follow a January announcement by metropolitan Montreal mayors, indicating they oppose the pipe- line, although later, Montreal Mayor Denis Coderre said he'd soften his stance if TransCanada addressed local concerns. And recently the Wolastoq Grand Council, representing the Maliseet Nation in New Brunswick, vowed to oppose Energy East. Saskatchewan Premier, Brad Wall, is supportive, as is Alberta's premier, Rachel Notley. "We must be able to present to the world an intelligent, progressive and well-managed energy product," she said during a Toronto speech. "And that can- not and will not happen without access to tidewater in our country." Somewhat surprisingly, Ontario Premier, Kathleen Wynne, also gave qualified support to the project after Notley visited. "We realize that we have to do things better, especially in Québec, if we want to earn the trust of Québecers and have a healthy dialogue about Energy East," said Duboyce. "It is clear that our engage- ment up until recently was not meeting the expectations of some important stakeholders." He said the appointment of Louis Bergeron as the new Energy East vice-pres- ident in charge of stakeholder relations in Québec and New Brunswick marks "a turning point". Bergeron's priority is to do a better job of listening to questions and concerns raised about the pipeline, and to address them more quickly and compre- hensively than before. But Duboyce stressed that Energy East has done many things right in trying to win support, including making more than 700 changes to the proposed pipeline route in Québec and New Brunswick since the project's was 2013 launch. "Those changes came as a result of issues or concerns raised by various stakeholders, including municipalities and landowners," he said. "That said, we know we need to do even better if we want to earn people's trust." He maintains that Energy East has con- siderable support from various groups, ranging from landowners to politicians to business owners, labour groups and ordinary Canadians all along the pipeline route. "We know this because we have engaged with thousands of people dur- ing more than 130 open house events, and thousands of meetings with various stakeholders and indigenous community leaders. We do not take that for granted and are ceaselessly seeking to engage with all stakeholders on the project to ensure we are hearing any questions or issues about the project and (are) addressing them." n energy east Pipeline Project a better option than rail

Articles in this issue

Archives of this issue

view archives of Resource World Magazine - Resource World - Apr-May 2016 - Vol 14 Iss 3