Finger-pointing, fulmination abound
What Jean calls ‘an attack on Alberta’ is ‘major victory’ to mayor of Montreal
Trans Canada’s decision to pull the plug on the Energy East pipeline has disappointed the oil sector and drawn ire from all sides of the Alberta political spectrum.
The energy company’s president and chief executive officer, Russ Girling, delivered the news in a statement Thursday morning. Trans Canada has also canned its Eastern Mainline project.
Premier Rachel Notley called the decision “unfortunate.”
Brian Jean, United Conservative Party leadership hopeful and one of two UCP MLAs in the oil heartland of Fort McMurray, labelled it an “attack on Alberta.”
The company suspended for 30 days last month its application for the $15.7-billion route that would carry Alberta oilsands product from Hardisty, Alta., to Saint John, N.B. The move came after the National Energy Board said its review would now consider indirect greenhouse gas emissions.
Trans Canada warned then that the project could ultimately be cancelled.
In a statement Thursday, Notley put Trans Canada’s change of heart down to a “broad range of factors.”
But she also called on the energy board to explain what future project reviews will look like in Canada.
Deliberation on upstream emissions and land-use integrity is important, she said, but “investors need confidence.”
“This is an unfortunate outcome for Canadians,” Notley said.
Canadian Association of Petroleum Producers president and CEO Tim McMillan said the federal government needs to sort out clear regulations and stick to them.
“It’s frustrating when you’re in the middle of a multi-year process and the project gets paused, the rules change, and they change repeatedly,” he said Thursday.
Federal Infrastructure Minister Amarjeet Sohi said the move by Trans Canada was a business decision.
He dismissed suggestions the culprit was the NEB’s new rules assessing downstream emissions.
“It’s the company’s decision not to proceed with Energy East based on their business analysis. It has nothing to do with the federal government’s review process,” he said Thursday.
Sohi said the Trans Mountain and Embridge Line 3 pipeline projects went through the same process, and Energy East would have received a fair assessment from the federal government if it reached cabinet.
“I would have strongly advocated for a positive decision on this, but this is a business decision made by the company,” Sohi said.
“They know their business and the economics of this pipeline.”
Conservatives are laying the blame squarely at the feet of Prime Minister Justin Trudeau — who they are convinced made changes to the independent NEB process — and Notley, who they say didn’t stand up to Ottawa.
UCP energy critic Drew Barnes wasn’t surprised by the Energy East cancellation.
“When Trudeau changed the rules so the process of getting a pipeline approved was totally put into his hands, (Notley) failed to stick up for Alberta’s needs and interests,” Barnes said.
Barnes and Jean also blasted Alberta’s carbon tax.
“The NDP promised massive carbon taxes and caps on our oilsands would mean social licence and approval for our pipelines, but they have been proven wrong yet again,” Jean said in a statement.
Jean said other provinces have “declared war on Alberta” over pipelines and are “threatening national unity.”
“The political blockading of Canada’s energy products is not acceptable and must be fought every step of the way,” he said.
Montreal Mayor Denis Coderre said the end of the project was a “major victory.”
Former Conservative MP and UCP leadership candidate Jason Kenney also slammed the decision, blaming a host of players, from Quebec politicians like Coderre who opposed the pipeline, to the NEB.
Calling the news a “devastating blow to Canada’s economic future,” Kenney said those responsible should face consequences.
He said Notley should refuse to increase Alberta’s carbon tax to $50 per tonne of emissions by 2022 as requested by the federal government, to send a message that Alberta “will not do Justin Trudeau’s bidding.”
Notley said the decision highlights the importance of diversifying market access and making the Trans Mountain pipeline expansion to the West Coast a national priority.
It’s frustrating when you’re in the middle of a multi-year process and the project gets paused, the rules change, and they change repeatedly.