Calls for transparent oil pipeline regulation in Canada

TransCanada Corp. is calling for a transparent regulatory system for pipelines in Canada, to assist with projects such as its planned west-to-east oil pipeline.

New Brunswick Premier David Alward recently travelled to Alberta to meet with political leaders, oil executives and to take in a tour of the oilsands, as a part of his push for a new west-to-east oil pipeline.

Shawn Howard, a spokesperson for TransCanada Corp., acknowledged that support from politicians is appreciated but it is not the key to ensuring future projects succeed.

“The other part of this is making sure there is an open, transparent regulatory process as you move a project like this from one end of the country to the other that is where some of these things get tied up, sometimes unnecessarily,” Howard said.

“That is one of the biggest areas of support that governments can provide, making sure the regulatory process is well understood and is going to be transparent with a reasonable time frame for that to take place.”

In earlier reports, TransCanada has said it wants to convert an existing, underused natural gas line into an oil pipeline supplying the east coast. The National Energy Board would need to approve this project, once an official proposal is submitted.

Along with paying for upgrading the existing natural gas pipeline, TransCanada is planning to spend money to bring the pipeline into New Brunswick.

Alward and Alberta Premier Alison Redford spoke at a recent press conference about the benefits of the pipeline. However, both premiers said they did not believe public funds would be necessary for any pipeline project.

TransCanada’s Howard confirmed that the project would be driven by market fundamentals and not rely on taxpayer funds.

The pipeline is of great interest to both provinces. Alberta’s oil is currently being sent to the US, where there is a glut, which means oil producers are getting Cdn$ 20 - 40 less per barrel than the world price. The lower prices translate into lower royalties for the provincial government and that is causing a potential multi-billion dollar deficit in Alberta.

However, a domestic pipeline to the Irving Oil Ltd. refinery in Saint John would allow oil producers in Alberta to charge the higher world price.

New Brunswick is supportive as the pipeline construction could add 2000 jobs and boost its refining sector, creating more jobs there as well.

Edited from various sources by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/07022013/calls_-for_-transparent_-oil_-pipeline_-regulation_-in_-canada_-319/