Canadian govt approves Northern Gateway pipeline

: Condensate, Crude oil
25/01/09

The Canadian government today approved Enbridge's C$7.9bn ($7.3bn) Northern Gateway pipeline to link landlocked Alberta crude supply with Asia-Pacific markets, finding that the contentious project is in the public interest.

Natural resources minister Greg Rickford said today the approval was subject to Enbridge showing Canada's National Energy Board it could meet 209 conditions around safety, environmental protection and consultations with local communities, including First Nations.

"The proponent clearly has more work to do in order to fulfil the public commitment it has made to engage with Aboriginal groups and local communities along the route," Rickford said.

The pipeline would carry 525,000 b/d of bitumen from Alberta to the port of Kitimat, British Columbia (BC), and then to primarily Asian markets via tankers. A second twinned line would carry condensate back to Alberta.

Proponents of the pipeline call it a nation-builder, opening new export markets and reducing Canada's dependency on the United States as its prime market for crude. Meanwhile, TransCanada's plan to build the 830,000 b/d Keystone XL pipeline linking Alberta with the US Gulf coast remains mired in legal and regulatory delays.

In Alberta, seat of Canada's energy industry, premier Dave Hancock said the Northern Gateway decision would create jobs and generate revenue for public services such as health care and education.

"Alberta will continue to support all safe and viable options to diversify and expand market access for Canada's resources," Hancock said.

Opponents argue the risk of a bitumen spill polluting land and waterways outweighs the economic benefits of the pipeline, and pledged to fight the proposal in court.

"Despite cabinet's approval, the pipeline will not be built," said Tim Gray, with activist group Environmental Defense. "These conditions cannot be met – an approval with conditions is as good as a no."

Opposition leaders condemned the Conservative party's approval, vowing to attempt to overturn the decision.

Enbridge first proposed the bitumen line in the early 2000s, but shelved the project because of a lack of backers until 2006. The company submitted a formal application to federal regulators in 2010, after which a review panel hosted consultations with affected parties along the proposed route and terminus.

The hearings were the most extensive in the National Energy Board's history, with more than 4,000 people giving testimony. In 2013 the panel recommended approving the pipeline, with 209 conditions.

dom/dcb

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25/01/07

Trump wants policy of 'no windmills' being built

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Libyan oil exports resilient in 2024

25/01/07

Libyan oil exports resilient in 2024

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Caracas clamps down before disputed inauguration

25/01/06

Caracas clamps down before disputed inauguration

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Canadian prime minister Trudeau to resign

25/01/06

Canadian prime minister Trudeau to resign

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US crude output at record 13.46mn b/d in Oct: EIA

25/01/03

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