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Crude pipeline approvals attract reaction straddling both sides of argument

Protesters walk down Robson Street in opposition to Canada's decision to approve Kinder Morgan's pipeline from the Alberta oil sands to the Pacific coast, in Vancouver

Protesters walk down Robson Street in opposition to Canada's decision to approve Kinder Morgan's pipeline from the Alberta oil sands to the Pacific coast, in Vancouver

Photo by Reuters

1st December 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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VANCOUVER (miningweekly.com) – Tuesday's approval by the federal Liberal government of Kinder Morgan’s C$6.8-billion Trans Mountain Expansion (TMX) project and Enbridge’s C$7.5-billion Line 3 Replacement project has drawn equally strong praise and criticism from Canadian business and civic organisations.

Gathering almost immediately after the announcement of government’s decision by Prime Minister Justin Trudeau, opponents rallied in Vancouver, on Canada’s West Coast, where the TMX project ends, to demonstrate their dissatisfaction.

“We are outraged with Prime Minister Trudeau’s cavalier ‘50/50’ announcement, and with the sheer audacity of his refusal to acknowledge the serious erosion of indigenous rights and the extreme impacts on climate change that will certainly result from approval of Kinder Morgan TMX and Line 3.

“We absolutely and categorically reject his sunny assertion [a reference to the guiding philosophy first used by Sir Wilfrid Laurier, which Trudeau regularly uses] that approving these two pipelines is the only way to protect the environment and grow the economy. This is simply not true and conjures up the ghost of his predecessor Stephen Harper, in making decisions that are not based in science,” stated grand chief Stewart Phillip, president of the Union of British Columbia Indian Chiefs.

He had unforgiving words for the Prime Minister, adding: “Prime Minister Trudeau committed to overhaul the CEAA [Canadian Environmental Assessment Act] and NEB [National Energy Board] processes before any major decisions would be made by his government. He lied.”

The Grand Chief has pledged to do whatever it takes to stop the pipeline from going through. “Ultimately, as the Trudeau government is well aware, these projects will not succeed. The opposition is too great and we will remain united, strong and determined,” he said.

CLIMATE SETBACK
Global environmental activist group Greenpeace Canada decried the approvals, which it said spelled disaster for Canada’s climate and indigenous reconciliation promises.

“Apparently Justin Trudeau’s sunny ways mean dark days ahead for climate action and indigenous reconciliation in Canada. With this announcement, Prime Minister Trudeau has broken his climate commitments, broken his commitments to indigenous rights, and has declared war on [British Columbia]. If Prime Minister Trudeau wanted to bring Standing Rock-like protests to Canada, he succeeded,” said spokesperson Mike Hudema.

Citing Environment Canada data Greenpeace noted that the approval of Line 3 was expected to increase upstream greenhouse gas emissions alone by 10-million to 13-millions tonnes, while the Kinder Morgan pipeline is expected to increase upstream greenhouse gas emissions by 13-million to 15-million tonnes. “Together, the upstream emissions of these two pipelines alone would effectively negate the emission reductions from the national carbon pricing plan (18-million tonnes) and the national coal phase-out (5-million tonnes),” Greenpeace argued.

A BOOST FOR BRITISH COLUMBIA?
Vancouver’s mayor was also seemingly taken aback by the pipeline decisions. "I am profoundly disappointed with today’s decision. Vancouver’s work with the federal government on transit, housing, welcoming refugees and other shared priorities has been overwhelmingly positive, but approving Kinder Morgan’s heavy oil pipeline expansion is a big step backwards for Canada’s environment and economy," mayor Gregor Robertson posted on social media.

British Columbia premier Christy Clark said in a statement that British Columbia's position had been principled, clear and consistent over the past four-and-a-half years and that any heavy oil project must meet the province’s five conditions, including to receive regulatory approvals; have world-leading marine-spill response; world-leading land-spill response; indigenous participation; and provide a fair share of benefits for British Columbia.

“We are pleased with the progress we . . . and the federal government have made in meeting these five conditions. Recently, in response to our work and our consistent position, the federal government announced a new Ocean Protection Plan to protect our coast. They are very close to meeting our five conditions, but we still need some details on the plan to be certain our coast is protected, and there is still some work to do to ensure that British Columbians get a fair share of the jobs and benefits from this project,” Clark stated, refusing to take an outright position for or against the project, but repeating the mantra that “meeting the five conditions is a path to 'yes'”.

She invited Trudeau to come to British Columbia to share his thinking behind his decision and to tell British Columbians directly about the values and principles that guided him in coming to this decision.

ALBERTA’S ALTERNATIVE
Alberta’s New Democratic Party-led government thanked the federal government for approving the energy infrastructure projects, noting how critically important they were to the economic future of Albertans. Alberta's oil sands have the third-largest oil reserves in the world, after Venezuela and Saudi Arabia.

“We are getting a chance to break our landlock. We're getting a chance to sell to China and other new markets at better prices. We're getting a chance to reduce our dependence on one market, and therefore to be more economically independent,” stated Premier Rachel Notley.

The Canadian Association of Petroleum Producers (CAPP) pointed out how important it was to diversify Canadian oil resources. Today less than 1% of Canada’s oil is exported to markets outside North America, yet world demand for oil continues to grow.

According to the CAPP, forecast growth in Canadian production shows that new major oil pipelines are urgently needed to deliver safe, secure and reliable energy to domestic and world markets.

ECONOMIC EXPANSION
Canada’s oil pipeline network has the capacity to move four-million barrels a day; last year the system moved 3.98-million barrels a day. CAPP estimates the supply from Canadian oil sands will increase by more than 850 000 bbl by 2021, resulting in total supply far exceeding existing pipeline capacity. Western Canadian oil supply could further grow to 5.5-million barrels a day by 2030.

Global demand for energy is forecast to increase by 31% by 2040 and demand for oil is forecast to grow by 12%.

“The government has made the right decision for Canadian prosperity; we will take responsible steps forward to make sure the project continues successfully. There is a balance between responsibly produced oil and meeting our climate targets; CAPP believes the two are not mutually exclusive and can be achieved as one,” stated CAPP president and CEO Tim McMillan.

The Mining Association of Canada (MAC) also expressed its support for the federal government’s approval of the new pipeline infrastructure to diversify markets for Canada’s oil sands industry.

“As an association that represents several oil sands companies and that advocates for trade-enabling infrastructure, we are pleased to see the government making timely, science-based decisions that set Canada in the right direction.

“We also appreciate the government’s recognition that Canada can be both a leader in the fight against climate change and in responsible resource development, [as well as] the role that Canadian energy products will play in the transition to a low carbon economy,” stated MAC president and CEO Pierre Gratton.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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