Saturday, February 28th6.1°C
25355
24105

West-to-east pipeline plan solidifying

The federal government is firming up its support of two projects that would see oil from Alberta piped to Atlantic Canada.

Natural Resources Minister Joe Oliver says he gave a tentative nod to one proposal in a meeting with industry giant Irving Oil.

"I met with Arthur Irving (Irving Oil's chairman) and expressed the support of the government of Canada, in principle, for this initiative," Oliver said in an interview with The Canadian Press.

TransCanada Corp. (TSX:TRP) wants to convert an existing, underused natural gas line to bring oil from Western Canada to Quebec and New Brunswick.

It would be up to the National Energy Board to approve such projects, and TransCanada has not yet formally submitted the proposal for scrutiny.

Irving Oil owns a refinery in Saint John with a current capacity of about 300,000 barrels per day. If the conversion goes ahead, the pipeline could move upwards of one million barrels per day and benefit the Irving refinery.

Oliver said industry participants have built a solid business case for the proposal, and he supports it, so long as it passes the necessary regulatory hurdles.

"We in principle are very supportive and are encouraging the market participants to pursue it," said Oliver.

"To the extent that there are regulatory reviews, of course we respect that, and our support would be contingent on those reviews coming out positive."

Another proposal would see Enbridge Inc. (TSX:ENB) expand capacity on some pipes in the Great Lakes region and reverse the flow of another line between Montreal and southern Ontario, the so-called Line 9 pipeline that currently brings imported oil to a refinery in Sarnia, Ont.

Environmental groups have mounted a campaign against the Line 9 reversal, calling it just one more step towards creating an eastern route for "dirty'' oilsands exports.

Oliver, though, said the proposal would have to jump through fewer environmental hoops and take less time than two controversial pipeline projects in the West, the Northern Gateway pipeline through British Columbia and TransCanada's Keystone XL line into the United States.

"You don't have the issue of the construction and the potential environmental impact which has to be assessed," Oliver said.

"In both cases ... the bulk of the line will have already been built, and that makes quite a difference. In terms of the surrounding area through which it goes there's no (environmental) impact."

The Canadian Press


Read more Business News

24153


Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7996+0.0004
Gold1203.00+6.10
Oil52.14+1.53
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



24502

FEATURED Property
2153995414 Morden Road
3 bedrooms 3 baths
$649,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


24843