As concerns about Canada’s dependence in the United States for energy exports, the executive president of Enbridge Inc., Greg Ebel, says that taking off a new energy export project in this country would require drastic changes in the government policy.
Speaking in a profit call, it established numerous criteria, such as legal guarantees for a pipe, the elimination of several environmental policies, more funds for indigenous participation and better indications of financial costs and returns, before the company considers to relive something like the Northern Linking Pipe or other export projects.
“So that we are willing to seriously restart in a project like that, whether this or west or simply west, we need to see a real change in numerous fronts,” Ebel said.
He said he would like to see legislative changes at the federal and provincial level that identifies energy projects as in national interest and, therefore, legally required, as well as the elimination of policies such as an emission limit, carbon taxes and new environmental evaluation rules .
The commercial elaboration of beer between Canada and the United States on tariff British Columbia. A new survey of the Angus Reid Institute shows public support for the idea is to grow and politicians have reflected on reviving projects, but an expert says that pipelines may not be so interested in the idea.
“A lot of federal legislative and regulatory actions would be required coordinated before thinking that investors, management equipment or customers could see such projects with light.”
In Bridge and its investors they lost hundreds of millions of dollars when the federal government rejected the plans for the Northern Gateway pipe in 2016, since they were approaching the finish line, he said.
“That is a powerful learning.”
The proposed Gateway Northern project would have exported crude oil from the northern coast of BC, a route that the federal government decided that it was too risky and rejected at the same time that it approved the expansion of the Trans Mountain pipe, which cost more than $ 34 thousand millions to build.
The recent threats of tariffs and another aggression from the United States have revived questions about the search for new export routes for Canadian energy.
Ebel said he feeds that there are more conversations about exports, but he will have to go far beyond speaking before the company considers a change in its approach.
“They are saying the right things, but it will take real measures, laws, regulation to attract the capital.”
His comments occurred when TC Energy Corp., who had proposed the energy pipe Energy East in 2013, said Friday that he was focusing discretionary spending on the United States, and that Canada would have to work to compete for capital.
While Ebel said it was good that Canada was talking about new export options due to tariff threats, it also minimized what effect they can have on the company’s existing energy exports.
“We have tariff concerns out there, but there is such a hard wiring of the energy system in North America, we simply do not see that as a material impact. And I think, given what we are seeing of customers, that is really supporting in the reality “.
He said that the company does not expect many changes in its expense plans in projects and regions unless tariffs are very high and remain for a long time.
Ebel said the company continues to invest in its crude and natural gas export projects and does not see significant changes in the short term, while suggesting a great Canadian export is not something they are considering anyway.
“You know, we talk a little about the main projects of this-west, but I’m not 100 % sure, or simply western projects, that will happen soon.”
Their comments occurred when in Bridge reported an gain attributable to common shareholders of $ 493 million in its fourth quarter, below $ 1.73 billion of the previous year.
