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Kinder Morgan’s Announcement Shouldn’t Come As A Surprise: CAPP

Fort McMurray, AB, Canada / MIX 103.7
Kinder Morgan's Announcement Shouldn't Come As A Surprise: CAPP

The Canadian Association of Petroleum Producers isn’t surprised by Kinder Morgan’s announcement about suspending all “non-essential activities” on the Trans Mountain pipeline expansion project.

On Sunday, the company cited ongoing opposition from the British Columbia government for halting spending on the $7.4-billion project.

“The frustration certainly has been building. Kinder Morgan has worked through a four-year review process, it got approval from the National Energy Board, it’s meeting the conditions that were put out in front of it, the federal government has approved supporting it, and yet they aren’t able to get clarity of their construction cycle and if they’ll ultimately be able to get this built. I don’t think this should surprise anybody,” CAPP President and CEO Tim McMillan tells Mix News.

Kinder Morgan says they will consult with stakeholders in an effort to reach agreements before May 31.

Prime Minister Justin Trudeau told reporters at Suncor’s Fort Hills site on Friday that the “pipeline will be built”. He, along with Premier Rachel Notley, reiterated those statement on Monday with Notley announcing her government will introduce an emergency motion on this issue in the Alberta legislature.

“Federal Natural Resources Minister Jim Carr has called on the Government of British Columbia to suspend all threats of delay to the Trans Mountain expansion. Those are strong words, but we need more. We are calling on the federal government to act in the defence of Alberta and working people in Western Canada,” Notley said in a statement Sunday.

McMillan says now is the time for the federal and provincial governments to consider all its options.

“They (the federal government) need to potentially put forward legislation that clarifies the legal challenges that are out there today. Clarify all those pieces. I think the potentially the Alberta government put forward that’d they’d be willing into investing into the pipeline, the federal government could also look at backstopping risk or some of the issues that they have responsibility for. Now’s the time for all these options.”

He adds we have a well-earned reputation of a country that can’t get projects done. In recent years a number of projects have been canceled for a variety of reasons after being approved including, Northern Gateway, Energy East, and LNG projects.

“We find ourselves in a very difficult situation with less than two months to go and I really hope we can put the right message out to the world that we can get out ducks in a row.”

The Trans Mountain pipeline expansion project is expected to increase the shipment of bitumen from Edmonton to Burnaby, B.C. to 890,000 barrels per day up from 300,000 barrels per day once complete.

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