In spite of everything that is discussed if Canada needs a new pipeline, one thing is missing: a company that wants to build it.
In JuneAlberta Prime Minister Danielle Smith said that “there was no defender” and that no proposal on the table of any company, but promised: “There will be soon.”
Until now, that has not yet materialized.
The Federal Government is opening the main project office in Calgary with the mission of identifying critical infrastructure projects and accelerating its development. The initial list of what Ottawa considers being the construction projects of the Nation will be published at the end of this week.
Alberta’s government is anxious to see a new pipe on that list, especially because Prime Minister Mark Carney has said that it is “very likely” that such a proposal makes the cut.
Alberta Energy and Mineral Minister Brian Jean says he feels encouraged by Ottawa’s desire to help accelerate along the development of a new important export pipe from Alberta to the BC coast.
“I’m glad to see that they recognize the need for that pipe, the demand for that pipe and the reality of that pipe that arrives in Tidewater would be very good for BC, for Alberta and truly good for Canada,” said Jean, who spoke with Canada’s Minister of Energy and Natural Resources of Canada, Tim Hodgson, about the problem on Friday morning.
At the moment, none Of the main pipelines have announced this project or publicly expressed the desire to develop a large new pipelines in western Canada.
The absence of a pipe proposal is, in some way, understandable, considering its cost, complexity and the history of failed and problematic projects in recent decades.
Only a small handful of companies has the experience and deep pockets to develop and build an export pipe, and they would have to be willing to commit tens of billions of dollars and possibly a decade of time to devote themselves to such a company.
The recent expansion of Trans Mountain underlined The struggles can face developers, such as frequent delays, excess mass costs and repeated protests. Ottawa had to rescue him from failure.
“I hope we have companies that are doing their due diligence and that they will present projects. But, of course, at this point we do not know,” said Grant Sprague, former Deputy Minister of Energy in Alberta.
‘Many reasons why defenders do not appear’
The development of a pipe project is a complicated process, he said, considering the necessary work to plan the exact route, talk to dozens of local communities and evaluate whether oil producers would sign contracts to use the pipe.
“It is not a 15 -minute conversation and we are in the races. There must be that proper real diligence made and people must have confidence,” he said.
“I don’t care if it’s a road, transmission lines or a pipe, people along the route want to have their opinion.”
The objective of the main project office is to reduce the time it takes to federal regulators to evaluate infrastructure proposals, hoping to meet the Electoral night of Carney promise To “build, baby, build”.
That could include a variety of projects, from nuclear ports and centrals to new mines and pipes.
Oil production in Alberta continues to grow and establish new discs. Export pipes could be filled by 2030, according to some forecasts.
At the same time, oil prices have been relatively weak compared to the average in the last five years.
“It is not the world of 2010 or 2004 or 2005 when everyone in the world wanted to build a new project in the oil sands and simply cry out for the pipe space,” said Andrew Leach, an economist of energy and environment and professor at the University of Alberta.
“You have many reasons why the proponents do not appear.”
Continuous interest in oil
Given US rates, the federal government has a growing desire to initiate the economy and diversify business partners.
“The prime minister must seek to develop new markets for Canadian products, including oil,” said Warren Mabee, director of the Institute of Energy and Environmental Policy of the University of Queen.
Oil has been a great money manufacturer for the country, Mabee said, so some politicians are interest in building another pipe. One report He glued the financial benefits of the Trans Mountain expansion pipe in more than $ 12 billion for the industry and the government during the first year of operation.
“The world can change a lot in the next 50 years, but at this time people want oil and people are willing to pay a lot for it,” he said.
Even so, the construction of a new pipe would ask questions about whether the country takes seriously the transition to cleaner energy, Mabee said.
Companies can also be discouraged to propose a new pipe, he said, knowing how much opposition could there be, such as the protests Against the expansion of the trans mountain and the coastal link, a natural gas pipeline in BC
“Another project after heels [of these pipelines] It is very likely that a bit of recoil of those groups is in front of them, “he said.
