Northern Gateway pipeline is approved: full story

The Harper government has approved construction of the proposed CAN$ 7.9 billion Northern Gateway pipeline.

Northern Gateway is designed to transport Alberta oilsands through northern B.C. to the Pacific and then through coastal waters in supertankers.

Strong political opposition

Ottawa’s decision puts B.C. Premier Christy Clark at the centre of a looming federal fight after Stephen Harper’s chief political rivals in the NDP and Liberals each vowed to kill the controversial project should they win power in elections next year, citing the danger of spills. Northern Gateway’s construction is not expected to begin before the next federal ballot.

NDP Leader Thomas Mulcair warned of civil unrest, suggesting Northern Gateway posed a “severe threat to social order, social peace,” and Liberal Leader Justin Trudeau accused the Harper government of being a “cheerleader for this pipeline from the very beginning when Canadians needed a referee.”

First Nations leaders and environmentalists in British Columbia also vowed to launch legal challenges. They promised to keep up the political pressure, with direct action to block the project if necessary.

Pipeline approval is subject to conditions, including obtaining B.C. permits

In a statement, federal Natural Resources Minister Greg Rickford said approval is subject to Enbridge satisfying 209 conditions – including further consultations with First Nations – laid down by the review panel.

He noted the company must obtain construction permits from the B.C. government, which has laid out its own five conditions the company must meet.

B.C. Environment Minister Mary Polak said after the decision that the project has so far only met one condition: passing the federal environmental review process.

Other conditions include: having a ‘world leading’ marine and land oil spill response; satisfying aboriginal and treaty legal rights; and making sure that B.C. receives its ‘fair share’ of the project’s economic benefits.

“There is still much work to be done if a Northern Gateway pipeline is ever to be built in British Columbia,” Polak said.

Janet Holder, Enbridge's vice-president for western access, said the company believes it can meet the Northern Gateway conditions.

Meanwhile, Alberta Premier Dave Hancock said Ottawa’s decision on the pipeline is “a step forward in accessing new markets for Canada’s energy resources.

“New markets for our products will create and support more jobs, and generate increased revenue to help pay for vital public services like quality health care and education for all Canadians,” he said in a statement.

The pipeline project

Mr. Harper has long argued that Canada must have access to West Coast ports for its booming oilsands industry, a conviction that hardened after the Obama administration delayed a decision on whether to approve the Keystone XL pipeline that would run from Alberta to the US Gulf Coast.

Northern Gateway would deliver 525 000 bpd of diluted bitumen to export terminals in Kitimat, B.C., where it would be loaded onto supertankers for export to Asia-Pacific markets.

As part of the 209 conditions, Enbridge must sign up firm commitments from producers to ship on the pipeline – but the ongoing uncertainty over the project may undermine that effort.

Enbridge reaction

Enbridge chief executive Al Monaco welcomed federal approval but acknowledged the company has much to do. Enbridge says it has agreements with 26 aboriginal communities along the pipeline route, but none has stepped forward to be identified.

Importance to Canada

Harper’s government has made building energy infrastructure a national priority, part of CAN$ 650 billion of investment in more than 600 existing or planned projects over the next decade to develop the country’s natural resources, including the world’s third-largest pool of recoverable crude reserves.

Alberta Premier Dave Hancock called yesterday’s decision “a step forward in accessing new markets for Canada’s energy resources.”

Edited from various sources by Elizabeth Corner

Read the article online at: https://www.worldpipelines.com/business-news/18062014/northern_gateway_pipeline_is_approved_full_story/