Northern Gateway pipeline may get the nod soon
The Conservative government appears poised to approve the Northern Gateway oilsands pipeline — a decision due by mid-June that could have an impact on the next federal election.
In December, the National Energy Board joint review panel conditionally approved the Enbridge Northern Gateway pipeline, which would carry oilsands bitumen from northern Alberta to the port of Kitimat, B.C. on the West Coast. The oilsands product would then be loaded onto supertankers for shipment to Asian markets.
The federal cabinet had 180 days from the time of the NEB approval to announce its final decision on the controversial $6.5-billion pipeline (Enbridge’s estimate of the cost), which makes the deadline June 17.
Natural Resources Minister Greg Rickford wouldn’t confirm Thursday that the decision will be made by then, explaining there are “a number of options” for the government. But opposition parties and environmental groups believe the pipeline’s approval is simply a formality.
“It’s just a foregone conclusion. They’ve been telegraphing this thing pretty strong,” said New Democrat MP Nathan Cullen, whose northern B.C. riding includes Kitimat. “The rubber stamp has been at the cabinet table for months.”
The Conservative government has for years trumpeted the need to increase pipeline capacity, including to the West Coast, to expand Canada’s energy export markets.
Earlier this month, on back-to-back days, the federal government announced new measures to address oil-spill concerns, including strengthening tanker safety and increasing company liability for pipeline spills.
Rickford said the announcements are simply positioning Canada to better address larger economic, environmental and geopolitical issues around energy development. “It’s not bound or tied to one specific project, and anybody who thinks of it that way may not be understanding the broader dynamic of both environmental and economic opportunities and issues with respect to energy,” he said.
On Northern Gateway, he added, “we’ll be making a decision very soon.”
The NEB, which estimates the entire project would cost $7.9 billion, approved the pipeline but with 209 conditions it said should be met.
The new tanker safety measures, based on recommendations of an expert panel, call for establishing region-specific plans in four areas with high tanker traffic — including the southern coast of B.C. — to improve oil spill prevention and response.
The government also announced it will make companies operating federally regulated pipelines responsible for at least $1 billion in cleanup costs and damages, even if they’re not at fault. Pipeline companies will continue to have unlimited liability when they’re negligent or at fault.
Should the pipeline receive federal approval, a number of obstacles and potential legal challenges still remain. For instance:
– Residents of Kitimat recently voted against the pipeline in a non-binding plebiscite;
– Several aboriginal groups who live near the pipeline route and shipping path are against the project and vow to block it;
– Environmental groups also fiercely oppose it;
– The British Columbia government has laid out five economic, environmental and consultative conditions that must be met before it will support the pipeline.
Former British Columbia MP and Conservative cabinet minister Stockwell Day said Canada could miss an enormous economic opportunity if it drags its heels on energy-infrastructure projects that pass environmental muster.
The recently announced $400-billion China-Russia gas deal is a good example of energy-hungry Asian countries having choices other than Canada for their energy needs. “We could stand to lose out significantly if we don’t move when all the environmental approvals have been met,” Day said.
The government’s decision on the pipeline could have down-the-road political implications for the federal parties. British Columbia is a significant battleground: The Conservatives hold 21 seats there, the NDP 12, the Liberals two and the Green party one seat — with redrawn ridings and six new seats in B.C. part of the 2015 federal election mix.