NEB approves TransCanada Corp’s Keystone Pipeline project to U.S.
2007 Oil Sands Trade Show sets attendance records
NEB approves TransCanada Corp’s Keystone Pipeline project to U.S.
By Bill Graveland
TransCanada Corp. (TSX:TRP) has been given the National Energy Board’s approval to build and operate the Canadian portion of the C$664-million Keystone oil pipeline from northern Alberta to U.S. markets.
In a politically charged decision on September 20th, the federal energy regulator said that the benefits of the big energy project, which will be capable of shipping 435,000 barrels of oil a day, outweighed possible negatives, such as its impact on Aboriginal communities, domestic industries, crude oil supplies and the environment.
A TransCanada spokeswoman said the company had no comment and needed a day to to review the NEB’s decision before responding.
However, opponents of the pipeline were quick to criticize the NEB’s decision – including the federal New Democratic Party.
NDP Leader Jack Layton said in a statement that the regulator ignored an Informetrica study that estimates Canada would forgo creating thousands of jobs if the pipelines are built to take the crude to U.S. refineries.
“Energy security, environmental ramifications, and the creation of good long-term jobs shouldn’t be at the mercy of a singular NEB decision,” Layton said in a statement.
The Keystone pipeline, as a whole, would run from northern Alberta to markets in Illinois in the U.S. Midwest. The Canadian portion of the line would extend from the oil hub at Hardisty, AB to a point near Haskett, MB.
The project would involve converting 864 kilometres of existing natural gas pipeline to an oil line.
About 371 kilometres of new pipeline would be built as part of the project, as well as new pump stations, tanks and other related equipment.
The estimated cost of the project is $664 million.
“The board stated in its decisions that the approval of the project is the public interest and the applied for facilities will be required for the present and future public convenience and necessity,” said Kristen Higgins, a communications officer at the NEB.
But the president of the Communications, Energy and Paperworkers Union of Canada said the NEB’s decision was hard to swallow.
“I hate to say I told you so. We knew this is what they [the NEB] was going to deliver for them,” said David Coles from Ottawa. “We’re going to keep trying. We’re going to appeal to the cabinet to overturn it.”
“It’s clearly not in the best interests of Canadians. It’s all about Mr. Harper making his friends in the U.S. happy. It’s not about Canadian energy security that’s for sure,” he added.
CEP has argued before the National Energy Board that the pipeline project is a bad deal for Canadians as it would exclusively serve U.S. interests and cost 18,000 new jobs.
“We’re giving our jobs to the Americans while we get stuck with pollution. Now what’s becoming very clear is Canada’s national energy security is at risk and very seriously,” said Coles. “This isn’t just some reactionary statement. With all of these applications to have bitumen exported to the U.S. – we’re faced with a situation that there’s no way the oil from Alberta can get to the refineries in eastern Canada without going through the U.S.”
The Keystone line is just one of the new projects planned by pipeline companies to export the rapidly expanding oilsands crude production to the United States.
TransCanada’s main Canadian-based rival, Calgary-based Enbridge Inc. (TSX:ENB) has at least $9 billion worth of new pipleines it is hoping to build over the next decade to the U.S. and other markets.
Enbridge, which operates the world’s longest crude oil and liquids pipeline system from Edmonton to Chicago and Toronto, is developing three large mainline expansions – the Southern Access expansion, the Alberta Clipper project and the Line 4 extension, which are expected to start coming into service in 2009.
These new lines are expected to compete against Keystone and give oilsands producers new options in shipping their product.
2007 Oil Sands Trade Show sets attendance records
The recent Oil Sands Trade Show & Conference in Edmonton welcomed more than 8,000 registered attendees to the world’s largest gathering of oil sands professionals; up significantly from the 2006 event in Fort McMurray with 3,500 registered attendees. Visitors and exhibitors from around the world came together to experience and showcase the most cutting-edge innovations for the oil sands industry. The 7th annual Athabasca Oil Sands Conference opened Wednesday, September 19th with a keynote address from Hon. Guy Boutilier, Minister of International, Intergovernmental and Aboriginal Relations – Government of Alberta, which was followed by featured presentations by experts and leaders of the oil sands industry.
“The popularity of this show continues to grow year-over-year, and Edmonton proved to be the perfect centre to accommodate the overwhelming exhibitor and visitor demand. Everyone has been incredibly supportive of this pivotal industry event, and we are thrilled to be able to bring the Oil Sands Trade Show and Conference back to Edmonton in 2008 where we expect to host close to 900 exhibitors.”